jHE  ample  facilities  of  OVn  OFFICE  ARC 
AT  YOUR  DISPOSAL  TO  BUY,  SELL  OR  OB- 
TAIN THE  BEST  MARKETS  ON  STAND- 
ARD  OIL  ISSUES    AND  WE  FEEL 
CONFIDENT  OUR  SERVICE  WILL 
BE    NOT   ONLY  SATISFAC- 
TORY  BUT  SUPERIOR  TO 

ANY  oTHE|,.^  U8HAKY  OF  THE 


MAY  2  0  1932 

iff  vtHSlTY  ©F  ILUNCIS 

STANDARD 


3SIDIARIES         .    I  SUBS.  EN  BLOC 

FACTIONS  I  OLD  STOCK 


ISSUES 


ARL  H.  PFORZHEIMER  &  CO. 

26  BROAD  STREET 
NEW  YORK  CITY 
TELEPHONES  4860.1-2-3-4  BROAD 


Weekly  Summary 

Our  Weekly  Summary  off  Avail-! 
able  Public  Infformation,  which 
has  become  indispensible  to 
thousands  off  investors  in  oil 
securities,  will  be  sent  to  you 
regularly  upon  request. 

Independent 
Oil  Booklet 

Our  Booklet  on  independent! 
Oil  Stocks  containing  data  oi\ 
196  miscellaneous  oil  com- 
panies, will  be  supplied  upor^ 
application. 

Special  Information 

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ffurnish  the  ffullest  and  most  ac- 
curate infformation  available  in 
reply  to  any  particular  inquiries 
that  might  be  made  in  regard  to 
the  oil  securities. 

CARL  H.  PFORZHEIMER  &  CO. 

NEW  YORK  CITY 
25  BROAD  STREET 

TELEPHONES  4.860>1.2-3-4  BROAD 


STANDARD  ^^^^^3 
OIL 
STOCKS 

fHE  LIBRARY  OF  THE 
^    MAY  2  0  1932 
UNIVtHSITY  OF  ILLINOIS. 


SIXTEENTH  EDITION 
1918 


Copyrighted  June,  1918,  by 
GENERAL  SERVICE  CORPORATION 
52  Wall  Street,  New  York 


TABLE  OF  CONTENTS 


Page 

Foreword   3 

Crude  Oil  Prices    15 

Ang-lo-American  Oil  Company,  Ltd   21 

Atlantic    Refining   Company   23 

Borne  Scrymser  Company   28 

Bucl^eye  Pipe  Line  Company   29 

Chesebrough  Manufacturing  Company   32 

Colonial  Oil  Company   33 

Continental  Oil  Company   34 

Crescent  Pipe  Line  Company   35 

Cumberland  Pipe  Line  Company,  Inc   31 

Eureka  Pipe  Line  Company   39 

Galena-Signal  Oil  Company   41 

Illinois  Pipe  Line  Company   45 

Imperial  Oil  Company,  Ltd   102 

Indiana  Pipe  Line  Company   47 

International  Petroleum  Company,  Ltd  ■   10?^ 

Market  Range   64-65 

National  Transit  Company   49 

New  York  Transit  Company  ".   5^ 

Northern  Pipe  Line  Company  •   54 

Ohio  Oil  Company   55 

Penn-Mex  Fuel  Company   58 

Pierce  Oil  Corporation   61 

Prairie  Oil  and  Gas  Company   68 

Prairie  Pipe  Line  Company   70 

Solar  Refining  Company   72 

Southern  Pipe  Line  Company   74 

South  Penn  Oil  Company   76 

South  West  Pennsylvania  Pipe  Lines   79 

Standard  Oil  Company  of  New  Jersey  '   96 

Standard  Oil  Company — California    81 

Standard  Oil  Company — Indiana   87 

Standard  Oil  Company — Kansas   '91 

Standard  Oil  Company — Kentucky    93 

Standard  Oil  Company — Nebraska    95 

Standard  Oil  Company — New  York    112 

Standard  Oil  Company — Ohio    117  , 

Swan  and  Finch  Company   119 

Union  Tank  Line  Company   112 

Vacuum  Oil  Company   124 

Washington   Oil   Company   127 


FOREWORD 

SINCE  the  publication  of  the  1917  booklet  on  Stand- 
ard Oil  Stocks,  the  oil  industry  has  undergone 
a  full  year  of  operation  under  war  conditions  and 
with  earnings  subjected  to  the  impost  of  war  taxes. 

It  is  a  matter  of  congratulation  that  in  anticipa- 
tion of  any  call  from  the  National  Government  or  its 
Allies,  the  oil  industry,  as  a  whole,  putting  aside  all 
^  consideration  of  individual  profit,  got  together  in  a 
S  spirit  of  wholehearted  co-operation  and  offered  united 
S   support  in  meeting  the  war  demands  of  the  nation. 
*         When  it  was  deemed  advisable  by  the  Fuel  Admin- 
istrator to  name  an  oil  director  to  co-operate  with  the 
2  industry,  the  Government's  choice  fell  by  good  for- 
^  tune  upon  Mark  L.  Requa,  of  California,  an  engineer 
of  international  reputation  with  practical  experience 
in  oil  production.  Mr.  Requa  found  an  united  industry 
ready  and  anxious  to  sink  private  interest  for  the 
public  good;   with  no  disposition  to  profit  by  the  in- 
ternational necessity  for  petroleum  products  and  a 
universal  willingness  to  work  and  sacrifice  to  win  the 
war.    As  a  result  governmental  intrusion  in  the  con- 
duct of  the  industry  has  been  entirely  of  a  construc- 
\  five  rather  than  a  corrective  nature. 

The  oil  director  and  his  staff  have  been  successful 
"  in  oibtaining  a  priority  classification  for  oil  shipments, 
in  improving  the  movement  of  tank  cars  and  in  ob- 
taining for  oil  producers  an  acceleration  of  deliveries 
of  well  drilling  supplies. 
^'  The  industry  of  itself  has  been  entirely  equal  to 

J      the  problem  of  meeting  the  increased  demand  for  pe- 
^    troleum  products  of  all  kinds.  Where  domestic  and  ex- 
1^    port  needs  have  not  been  met  within  the  past  year,  the 
^      fault  cannot  be  ascribed  to  a  lack  of  supplies  but  to 
f lJ<transportation  difficulties,  outside  of  the  industry's 
I^^L^  control.   With  ample  tankViar  facilities,  refiners  have 
J  :     experienced  difficulty  in  getting  their  refined  products 
■qji^  to  market,  because  of  the  shortcomings  of  railroad 
<  management.     The  export  movement  of  petroleum 
'       products  has  been  hampered  seriously  by  inexpert 
^  handling  of  tankship  movements.    But  in  spite  of 
^     these  difficulties,  which  the  industry  has  regarded 
%^  good  naturedly,  as  an  inevitable  concomitant  of  condi- 
tions,  created  by  our  sudden  advent  into  war,  the  oil 
I- 1  business  as  a  whole  has  been  maintained  upon  its 
</     usual  high  plane  of  efficiency  and  profit. 

The  industry  as  a  whole  takes  especial  pride  in 
the  fBct  that  despite  increased  costs  for  labor,  raw 
material  and  operating  equipment,  it  has  been  able  to 


Effect  of  War  Taxes 


maintain  itself  without  unduly  shifting  the  burden  of 
increased  operating  costs  upon  the  ultimate  con- 
sumer. 

Of  all  our  great  basic  industries,  the  oil  industry 
stands  alone  in  its  record  of  maintaining  prices  under 
war  conditions,  practically  on  a  pre-war  basis.  The 
reason  for  this  is  first  that  the  war  did  not  find  the 
industry  unprepared  for  the  necessary  increase  in  the, 
production  and  refining  of  crude  oil.  Secondly,  in 
normal  times,  the  shifting  demand  for  one  or  more 
of  the  basic  products  of  crude  petroleum,  necessitates 
a  loading  of  profit  on  specific  products  to  offset  the 
loss  on  others.  Under  war  time  conditions  with  a 
demand  for  their  entire  output,  refiners  have  been 
able  to  maintain  a  normal  level  of  prices.  As  a  result 
no  suspicion  of  profiteering  has  tarnished  the  good 
name  of  the  industry. 

This  universal  demand  for  all  manner  of  petro- 
leum products  and  the  necessity  for  capacity  oper- 
ation, has  enabled  all  branches  of  the  industry  to 
maintain  a  very  respectable  level  of  net  profits  in, 
spite  of  the  heavy  impost  of  war  taxes. 

Effect  of  War  Taxes 

In  the  refining  companies  of  the  Standard  Oil 
group,  we  find  for  instance  the  following  comparison 
of  net  profits  available  for  dividends,  after  war  taxes, 
compared  with  net  profits  available  for  dividends, 
in  the  pre-war  period: 

1917  Net  Profits  1916 

Company          Net  Earningrs  War  Taxes  After  Taxes  Earnings 

Atlantic  Rfg-. .  .  $13,931,445  $3,925,136  .$9,006,309  $9,628,256 

Solar  Rfg.  Co..       1,831,510  689,191      1,142,319  1,104,601 

S.  O.  California    24,479,940  5,830,116  18,649,624  17,605,304 

S.O.Indiana..     43,808,931  17,000,000  26,808,931  30,000,000 

S.  O.  Kansas..       2,487,629  1,064,647      1,422,982  1,270,313 

S.  O.  New  York    39,376,043  ^9,375,371  30,000,672  36,638,494 

S.  O.  Ohio                4,657,970  1,427,057      3,230,913  3,751,936 

Vacuum  Oil  Co.     11,942,318  2,617,922      9,324,396  9,221,937 


Totals  $141,515,786  $41,929,440  $99,586,146  $109,220,841 

The  natural  increase  in  earning  power  indicated 
here  has  been  amply  sufficient  to  offset  the  heavy 
impost  of  war  taxation.  It  is  needless  to  add  that 
as  tliese  companies  earn  their  dividends  three 
and  four  times  over,  their  dividend  prospects  have 
been  in  no  wise  impaired.  As  earnest  of  the  fact  the 
companies  in  this  group  paid  $28,966,247  in  dividends 
out  of  1917  profits,  compared  with  dividends  of  $14,- 
338.415  in  1916. 


i 


Effect  of  War  Taxes 


5 


Producing  Companies 

The  four  producing  companies  felt  the  effect  of 
»  war  time  conditions  and  war  taxation  more  heavily 
than  any  other  group,  although  crude  oil  prices  ruled 
higher  than  in  any  year  since  the  dissolution.  The 
combined  earnings  of  Ohio  Oil  Company,  Prairie  Oil 
and  Gas  Company,  South  Penn  Oil  Company  and 
Washington  Oil  Company  in  1917  were  $29,810,260 
against  $35,457,806  in  1916.  These  four  companies 
paid  dividends  of  $22,040,000  in  1917  against  $21,- 
080,000  in  the  previous  year. 


Pipe  Line  Companies 

The  twelve  pipe  line  companies  show  1917  earn- 
ings of  $25,572,691  compared  with  earnings  of  $26,- 
800,135  in  1916.  Dividends  paid  out  of  1917  earnings 
totalled  $24,368,280  against  $22,554,501  in  1916.  The 
notable  feature  oi  this  group  has  been  the  steady  im- 
provement in  earnings  of  the  Eastern  lines,  particu- 
larly the  northern  group,  through  which  the  heavy 

^  trunk  line  shipments  of  Oklahoma  and  Kansas  crude 
oil  to  the  eastern  refineries  are  carried.  The  progress 
of  this  particular  group  in  earning  power  may  be 

{illustrated  as  follows: 

Earnings  Dividends 
1917       1916       1915  1917    1916  1915 

Buckeye   23.8%     20.8%     15.7%        19%     16%  16% 

Indiana    29.0%    26.0%    25.4%        24%     18%  16% 

New  York  Transit  29.0%  26.7%  16.2%  20%  18%  16% 
Northern    15.7%     15.0%    10.7%        14%    10%  10% 

The  eastern  lines  have  shown  a  substantial  growth 
in  traffic  over  the  last  three  years  because  of  the  in- 
creasing demand  for  Mid-Continent  oil  in  the  eastern 
refineries.  In  the  first  four  months  of  the  current 
year,  although  severe  weather  conditions  in  the  pro- 
ducing fields  interfered  with  gathering  line  business 
during  February  and  March,  traffic  shows  a  further 
increase.  This  is  due  in  large  part  to  the  order  of 
the  Shipping  Board  in  favor  of  gasolene  exports  from 
the  Atlantic  seaboard  which  has  necessitated  a  capac- 
ity movement  of  Mid-Continent  crude  to  the  East. 
This  condition  is  reflected  in  the  following  statistics: 

Buckeye  Pipe  Liine  Company 

All  Receipts     AH  Deliveries 

1918 — 4  months   10,379,045  10,501,604 

1917 — 4  months   9,467,146  9,591,627 


-f911,899 


+910,069 


6 


Effect  of  War  Taxes 


Indiana  Pipe  Ijine  Company 


191S — 4  months   10,436,345  10,622,084 

1917 — 4  months   12,302,921  11,096,493 


—1,866,576  —474,409 

New  York  Transit  Company 

1918 — 4  months                    5,214,898  5,479,696 

1917 — 4  months                    4,545,339  4,984,145 


+669,559  +495,551 

Northern  Pipe  Line  Company 

1918 — 4  months                    6,644,198  6,774,030 

1917 — 4  months                    4,877,374  4,901,022 


+1,766,824  +1,873,008 

In  the  Southern  group,  of  Appalachian  lines, 
Southern  and  Eureka  may  be  expected  to  show  in- 
creased traffic  in  1918,  inasmuch  as  the  Vacuum  Oil 
Company's  new  refinery  at  Paulsboro,  N.  J.,  will  con- 
sume about  5,000  barrels  daily,  which  will  be  supplied 
through  these  two  systems.  The  Cumberland  Pipe 
Line  Company  has  shown  the  beneficial  effects  of  the 
new  developments  in  the  Kentucky  fields,  but  South-' 
west  Pennsylvania  Pipe  Lines,  the  Crescent  Pipe  Line 
Company  and  National  Transit  Company  lines  reflect 
the  progressive  oil  exhaustion  of  the  territory  ^hich 
they  serve. 

Marketing  Companies 

In  the  group  of  marketing  companies,  Standard 
Oil  Company  of  Kentucky  alone  furnishes  a  financial 
statement  and  the  impressive  improvement  disclosed 
by  its  earning  statement  augurs  well  for  the  contin- 
ued earning  power  of  the  other  exclusively  marketing 
organizations — Continental  Oil  Company  and  Stand- 
ard Oil  Company  of  Nebraska.  Both  Standard  Oil 
Company  of  Kentucky  and  Continental  Oil  Company 
will  be  classed  hereafter  with  the  refining  group  and 
no  doubt,  if  development  work  now  under  way,  proves 
the  existence  of  commercial  oil  production  in  Nebras- 
ka, the  Standard  of  Nebraska  will  embark  in  the 
refining  business. 

Compounding  Companies 

The  compounding  companies — Galena  Signal  Oil 
Company,  Borne  Scrymser  Company  and  the  Swan 
and  Finch  Company — have  distinguished  themselves 
during  the  past  year  by  producing  brands  of  lubri- 
cants for  aeroplane  motors  that  have  withstood  suc- 
cessfully the  rieorous  tests  of  the  United  States  Gov- 
ernment.   The  Swan  and  Finch  Company  in  fact  has 


Growth  of  Capitalization 


7 


been  supplying  the  entire  requirements  of  one  of 
our  Allies  for  a  year  past  in  aeroplane  lubricants. 
With  the  current  year,  the  Galena  ^Signal  Oil  Com- 
pany becomes  the  Galena  Oil  Company  and  will  cease 
to  be  a  compounding  company  exclusively  by  reason 
of  its  program  of  expansion  which  will  give  it  a  prom- 
inent place  in  the  producing  and  refining  activities 
of  the  Gulf  Coast. 

Growth  of  Capitalization 

The  continued  policy  of  these  segregated  com- 
panies in  puLLin^  back  surplus  profits  into  business 
expansion,  has  resulted  in  an  impressive  series  of 
capital  adjustments  since  the  dissolution. 

This  is  shown  in  the  following  table: 

Sub*»<'ri|»tlon 
Stock       Rijfrbts  Capitalization 
COMPANY  DividendM  H'd'ffs  Old  Capi-    »vv  Capi- 

1912  Declared  at  par  talization  talizatioB 

Standard  Oil  of  California    80%  $2.5,000.000  $45,000,000 

Standard  Oil  of  Indiana..  2900%  ....  1,000.000  30.000,000 
Standard  Oil  of  Nebraska.  33%%     ....         600.000  «oo.00« 

Swan  &  Finch   400%         100. Ooo  .%00.000 

Vacuum  Oil  Company   500%      2.500.000  15.000,000 

1913 

A  neir)-  XTTK^rican  < 'H  l(»0^r  i»5.POO.ooo  )f; 1 0.000. 000 

iContinental  Oil  Company  900%                      300,000  .3,000,000 

>TH(ena-Sli:nai  oii  <'(>     <  '  rn  50V/:  8,000,«MM>  1*^.000.000 

'la  lena-Si^na!  <'>il  <  V.      Pfd  2.000,000  2.000,000 

Sniar  Refini ntr  rurnpanv  300 500.000  2.000,000 

><>u*h  Penn  Oil  •'"ompany  300'^,^  100%       2.500.000  12.500.000 

Standard   Oil.   Kansas   ..  .  100%  ...       1.000.000  2.000,000 

.«?tandard  Oil,  Nebraska..  25%  ....         800.000  1,000.000 

Standard  Oil,  New  York  400%  ..     ^ft.OOO.OOO  75.000.000 

nVaters-Pierce  Oil  Co....  2625%  ....         400,000  10,500,000 

•'Standard  Oil,  Kentuckv   200' r     .1^1,000.000  .1?3.O00,O0O 

^Standard  Oil,  California,   107^     44,933,994  50,000,000 

'015 

^Ohio  O'l  Com-oany   1. S3  1-3%    $20,000,000 

oprairie  Oil  &  Gas  Co   150%    27,000,000 

1916 

Standard  Oil  Co.,  Calif...       50%     ....  $50,000.(100  $75,000,000 

'National  Transit  Co   12,727,575  6,362,500 

Swan  &  Finch                                   l(K)%  500.000  1,000.000 

("^hesebrougrh    Mfsr.    Co...       200%     ....  500.000  1.500.000 

'Standard  Oil  r^o..  Ohio...     100%     ,.    .  3.500,000  T.OOO.OOO 

"^Colonial  Oil  Company  

1917 

South  Penn  Oil  Company.       60%    $12,500,000  $20,000,000 

Standard  Oil  Co.,  Calif..  33  1-3%    75,000,000  100,000,000 

''Ohio  Oil  Company   15,000,000  60,000,000 

lostandard   Oil,   Indiana   30,000,000  

Standard  Oil.   Kentucky. .     100%     ....  3,000,000  6.000.666 

Cumberland  P'pe  Line                        .50%  1  000-000  1,500,000 

^^Continental  Oil  Co   3,000,000  12,000,000 


8 


Growth  of  Capitalization 


1918 

i2Ang-lo- American  Oil  Co.   oO'^c  $10,000,000  $15,000,000 

isswan  &  Finch  Company    50 9r  1,000,000  1,500,000 

"Galena  Signal  Oil,  Pfd   20^o  2,000,000  8,000,000 

Galena  Signal  Oil,  Com   20'/o  12,000,009  16,000,000 


1 —  Continental  Oil  Company  (of  Colorado)  was  incorporated 
with  $3,()00,0(»U  capital  stock  to  acquire  the  Continental 
Oil  Company  (of  Iowa),  having-  a  capital  stock  of  $300,- 
ooo.  the  exchange  being  made  on  the  basis  of  ten  shares 
for  one. 

2 —  Waters-Pierce  Oil  Company  was  absorbed  July  25,  1913, 
by  the  Pierce  Oil  Corporation.  The  terms  of  exchange 
being  $1,250  in  cash  and  $2,625  in   new  stock. 

3 —  Standard  Oil  Co.  of  Kentucky  increased  is  authorized 
capital  stock  to  $3.U00,U00  by  declaring  a  cash  dividend 
of  200  per  cent,  and  awarded  rights  to  Its  stockholders 
to  subscribe  at  pai  for  two  shares  of  new  stock  for  each 
share  of  old  stock.  The  stockholders  thereupon  used 
their  cash  dividend  to  exercise  their  subscription  rights. 

4 —  Stockholders  of  Standard  Oil,  California,  met  on  March 
16,  1914,  and  approved  the  proposition  to  increase  the 

authorized  capital  stock  from  $50,000,000  to  $100,ooo.ouO. 
The  company  will  take  no  action  on  this  capital  increase 
until  business  conditions  are  thoroughly  normal.  How- 
ever, the  company  on  February  2,  1914,  awarded  the 
shareholders  the  privilege  of  purchasing  45,184  shares  of 
treasury  stock  at  par.  This  was  equivalent  to  subscrip- 
tion rights  of  10  per  cq-.l.  on  the  outstanding  stock  and 
raised  the  issued  capital  to  $49,686,655. 

5 —  Ohio  Oil  Company  in  separating  its  pipe  lines  from  its 
producing  properties,  formed  the  Illinois  Pipe  Line  Com- 
pany, capital  $20,000,000  and,  turned  over  its  transport- 
ation properties  in  return  for  the  $20,000,000  capital 
stock,  which  was  then  distributed  pro  rata  among  Ohio 
Oil   Company  shareholders. 

6 —  Prairie  Oil  &  Gas  Company  in  separating  its  pipe  line 
properties  formed  a  $27,000,000  corporation,  the  Prairie 
Pipe  Line  Company,  the  stock  of  which  was  then  dis- 
tributed pro  rata,  in  the  shape  of  a  150  per  cent,  stock 
dividend,  among  Prairie  Oil  and  Gas  Company  share- 
holders. 

7 —  National  Transit  Company  reduced  its  capitalization 
one-half  by  retiring  103  shares  and  distributing  a  50  per 
cent,  cash  dividend  ($12.50),  leaving  the  same  nuniOti 
of  shares  outstanding,  but  reducing  the  par  from  $2.' 
to  $12.50. 

8 —  Colonial  Oil  Company  distributed  100  per  cent  ($250,000) 
in  liquidation. 

9 —  Ohio  Oil  Company  authorized  an  increase  of  capital  to 
$60,000,000  and  the  directors  declared  a  300  per  cent,  stock 
dividend  by  raising  the  par  value  of  600,000  shares  from 
$25  to  $100.  The  Secretary  of  State  of  Ohio  refused  to 
sanction  this  method  and  the  matter  is  in  abeyance. 

10 —  Standard  Oil  Company  of  Indiana  stockholders  have 
authorized  an  increasing-  capital  to  $100,000,000  but  no 
steps  have  been  taken  to  distribute  the  increase. 

11 —  Continental  Oil  Company  shareholders  have  authorized 
an  increase  to  $12,000,000,  but  no  steps  have  been  taken 
to  adjust  the  capital. 

12 —  Anglo-American  Oil  stockholders  enjoyed  "rights"  to 
subscribe  to  50  per  cent,  of  their  stock  holding  at  150 
per  cent,  of  par  ($7.50). 


Dividend  Disbursements 


9 


13 —  Swan  &  Finch  stockholders  on  May  2,  ISIS,  authorized 
a  capital  increase  to  $2,000,000  and  subscription  rights 
at  par  to  50  per  cent,  of  present  holdings  will  be  ex- 
tended. 

14 —  Galena  Signal  Oil  Company  stockholders  on  May  21, 
1918,  authorized  an  increase  of  preferred  stock  to  $10,- 
000,000  and  common  stock  to  $20,00u,000,  of  vx'hich  $2,- 
000,000  preferred  and  $4,000,000  common  vs'ill  be  paid 
for  new  properties.  The  $20,000,000  stock  then  out- 
standing will  enjoy  the  right  to  subscribe  at  par  to 
$4,000,000   additional   preferred  stock. 

Dividend  Payments 

The  progressive  earning  pov/er  of  this  group  of 
companies  is  rejected  not  only  in  the  growth  of  their 
capitalization  but  also  in  the  increase  of  cash  divi- 
dend disbursements  and  expansion  of  net  assets.  The 
significant  record  of  cash  dividend  disbursements  by 
years  and  quarters  is  shown  in  the  foUovvang  table: 

First          Second  Third  Foui-th 

Quarter       Quarter  Quarter       Quarter  Total 

1918     $26,483,747  $25,293,752   !  .  .  . 

1917      23,097,668    26,428,252  $22,968,751  $27,463,252  $98,627,875 

1916      22,179,085  *30. 406,454  21,980,168    24.002,168  98,627,875 

4915      15,241,966    14,368,636  15,891,966    16,898,636  62,401,204 

1914      17,904,636    16,426,306  14,430,636    14,931,306  63,692,884 

1913    t55,652,423    15,552,096  15,213,746    21,377,096  107,795,361 

1912      10,220,396    11,983,746  13,190,396    16,392,096  51,786,631 

♦Includes  $250,000  disbursed  by  Colonial  Oil  Company  in 
liquidation,  and  $6,363,786  disbursed  by  National  Transli 
Company  from  accumulated  assets  to  reduce  its  capital 
50  per  cent. 

tincludes  $39,335,352  disbursed  by  Standard  Oil  Company 
of  New  Jersey  from  repayment  of  loans  to  former 
subsidiaries. 

Increase  in  Net  Investment 

More  striking  perhaps  is  the  growth  in  net  assets 
which  can  be  shown  by  taking  a  group  of  selected 
companies  which  have  furnished  financial  statements 
continuously  since  the  dissolution: 

Net  Investment 

COMPANY  Dec.  31,  1912  Dec.  31,  1917 

Ang-lo-American   Oil  Company   $13,005,686  *,$20,996,208 

Atlantic  Refining-  Company   23,404,623  51.763,107 

Ohio  Oil  Company   64,225,412  t80,950,749 

Prairie  Oil  &  Gas  Company   55,217,688  t71, 743,457 

Solar  Refining  Company   3,512,179  4,649,118 

South  Penn  Oil  Company   16,408,286  26,997,129 

Standard  Oil  Company — California.  65,129,996  114,645,688 

Standard  Oil  Company — Indiana...  40,216,046  119,845,588 

Standard  Oil  Company — Kansas.  .  .  .  2,088,479  5,361,665 

Standard  Oil  Company — Kentucky  .  3,799,252  8,356,345 

•  Standard  Oil  Company — New  York.  74,386,338  101,467,574 

Standard  Oil  Company — Ohio   7,540,345  '  15,150,311 

Swan  and  Finch  Company   1,088,689  1,559,088 

Union  Tank  Line  >   $885,881  17,463,778 

Vacuum  Oil  Company   29,675,276  55,134,939 

*As  of  Deceriiber  31,  1916.     fAfter  separation  of  pipe  line 

)  properties.  tDeficit. 


10 


After  the  War  Prospects 


These  figures  show  the  steady  accumulation  of 
equities  for  the  shareholders  in  addition  to  the  liberal 
dividend  policy  of  these  companies  and  presage  a 
continuation  in  the  future  of  the  policy  of  progressive 
capital  adjustments  through  stock  dividends. 

The  data  heretofore  set  forth  demonstrates  the 
ability  of  these  companies  to  maintain  their  progres- 
sive increase  in  earnings  in  spite  of  the  handicaps  of 
increased  costs  of  labor  and  materials  and  transpor- 
tation difficulties,  which  are  incident  to  war  time  con- 
ditions. In  their  relations  with  labor,  these  com- 
panies have  been  happy  in  anticipating  the  rising 
scale  of  living  costs  for  all  their  employees  by  wage 
advances  and  bonus  systems. 

Future  of  the  Industry 

In  looking  forward  to  the  post  war  period,  it  must 
be  remembered  that  none  of  these  companies  have 
been  called  upon  to  make  outlays  for  special  construc- 
tion. Hence  there  will  be  no  necessity  to  write  off' 
against  earnings,  large  sums  for  special  investment, 
as  will  be  the  case  with  so  many  other  industrial 
concerns. 

The  effect  of  peace  upon  the  industry,  will  be. 
exceedingly  stimulating,  as  it  will  release  a  great 
number  of  tankships  now  in  service  with  the  allied 
fleets  and  put  them  into  service,  restoring  the  de- 
pleted petroleum  supplies  of  all  European  and  Ori- 
ental countries. 

One  of  the  outstanding  effects  of  the  world  war 
has  been  the  tremendous  wastage  of  horses,  which 
will  result  and  already  has  resulted  in  recourse  to 
motor  tractors  for  tillage,  as  well  as  for  general  trans- 
portation. The  effect  of  this  practically  will  be  to 
double  the  European  demand  for  motor  spirit. 

The  close  of  the  war  will  also  bring  about  a  more 
general  use  of  oil  as  fuel  in  marine  transportation. 
A  large  proportion  of  the  vessels  now  being  rushed 
to  completion  in  the  ship  yards  of  the  United  States 
and  England  are  oil  burners  and  the  demands  for 
liquid  fuel,  will  bring  that  branch  of  the  industry  into 
almost  equal  prominence  with  the  manufacture  of 
gasolene.  Standard  Oil  Company  of  New  Jersey,  , 
Standard  Oil  Company  of  New  York,  Atlantic  Refining 
Company,  Vacuum  Oil  Company  and  Standard  Oil 
Company  of  California,  already  have  fortified  them- 
selves to  hold  dominant  positions  in  the  international 
fuel  oil  trade. 


Sxpansion  Due  to  Motor  Vehicles 


11 


Finally  the  close  of  the  war  will  bring  about  a 
resumption  in  capacity  output  for  motor  driven 
vehicles,  motor  trucks  and  farm  tractors,  as  well  as 
pleasure  cars  and  a  consequent  increase  of  the  de- 
mand for  motor  spirit  and  lubricants. 

Stimulus  of  Automobile  Industry 

It  seems  hardly  necessary  to  state  that  the  expan- 
sion of  the  oil  industry  in  the  last  five  years  has 
been  the  result  of  the  enormous  growth  in  the  use  of 
self-propelled  vehicles. 

This  situation  has  been  treated  exhaustively  by 
the  Federal  Trade  Commission  in  its  report  on  the 
"Cost  of  Gasolene."  The  Commission's  investigation 
covered  only  the  year  1915,  but  disclosed  that  the 
total  horsepower  of  gasolene  engines  manufactured  in 
the  country  was  11,279,143  h.  p.  in  1913;  13,887,331 
h.  p.  in  1914  and  22,524,858  h.  p.  in  1915.  Figures  for 
1916  and  1917  on  total  horsepower  are  not  available 
but  the  result  of  this  increase  in  internal  combustion 
engines  is  reflected  in  the  refinery  output  of  gasolene. 

The  intimate  relation  between  the  growth  of  the 
automobile  industry  and  the  expansion  of  the  oil 
industry  may  be  summed  up  graphically  in  the  fol- 
lowing table: 

Kegristered  Refinery  Produc-  Crude  Oil 
Automobiles  in  tion  Gasolene  Marketed 
United  States  (Gallons)      Bbls.  (42  gals.) 


1917   4,941,276  2,729,712,033  341,800,000 

1916   3,544,952  2,058,880,596  300,767,158 

1915   2,423,788  1,849,790,000  281,104,104 

1914   1,508,000  1,460,037,200  265,762,535 

1913   1,191,000  1,099,350,000  248,381,744 


The  increase  in  refinery  output  of  gasolene  be- 
tween 1913  and  1917  was  1,630,362,033  gallons  or  150 
per  cent,  in  the  four  year  period.  The  marketed  pro- 
duction of  crude  oil  increased  in  the  same  time  only 
39  per  cent. 

The  discrepancy  was  met  by  the  introduction  of 
pressure  stills  in  refining  practice  to  obtain  a  higher 
yield  of  gasolene,  by  accustoming  consumers  to  use  a 
a  lower  gravity  gasolene  which  enabled  refiners  to 
utilize  a  larger  proportion  of  their  naphthas  for  motor 
spirit  and  by  the  use  of  casinghead  and  absorption 
gasolenes. 

In  spite  of  the  immense  increase  in  gasolene  con- 
sumption, refiners  have  been  able  to  avoid  a  gasolene 
shortage  without  unduly  expanding  their  refining 
plants  or  increasing  too  greatly  their  output  of  their 
by-products. 


12 


The  Gasolene  Situation 


The  gasolene  problem  in  1918  is  discussed  in  an 
informed  manner  by  R.  D.  Leonard,  general  manager 
for  Domestic  Sales  of  the  Atlantic  Refining  Company. 
In  a  recent  pamphlet  on  the  ''Relation  Between  Gas- 
olene and  the  Growth  of  the  Automobile  Industry," 
he  says  in  part: 

"The  subject  of  immediate  interest  in  the  meeting  of  the 
demand  for  gasolene  for  the  year  1918,  and  it  should  be 
understood  that  any  prediction  or  prophesy  of  how  this  will 
be  accomplished  must  be  based  on  the  past  experiences  as 
revealed  by  the  statistics  of  the  petroleum  industry,  and 
not  on  any  assured  facts  pertaining  to  the  future.  The  gaso- 
lene requirements  for  the  year  1918  must  of  necessity  come 
from  the  crude  oil  produced  from  the  earth,  and  from  the 
natural  or  "casing  head  gases  that  likewise  are  produced  from 
internal  or  unseen  regions.  The  only  visible  or  definite  stock 
of  supply  is  the  crude  oil  that  is  held  in  storage  above  ground, 
and  it  would  be  rather  a  discouraging  outlook,  as  the  normal 
stocks  of  crude  oil  available  in  storage  are  seldom  in  excess 
of  Ave-  or  six  months'  consumption  requirements,  in  addition 
to  which  the  gasolene  in  stock  at  refineries  is  seldom  in  excess 
of  thirty  to  sixty  days'  requirements,  if  it  were  not  for  the 
optimistic  view  that  the  previous  experiences  of  the  pe,tro- 
leum  industry  put  into  the  matter.  The  latest  figures  which 
are  available  indicate  the  stocks  of  crude  oil  and  gasolene  as 
follows:  — 


Crude  Oil  Producers'  Tank?   120,000,000  barrels 

Pipe  Line — Storage     92,500,000  barrels 


Total   212,500,000  barrels  ' 

Equivalent  in  Gasolene  Approximatelj^ .  .  .  34,000,000  barrels 
Gasolene  in  Stock  at  Refineries   6,000,000  barrels 


"The  .experience  of  the  past  is  that  in  addition  to  the 
regular  production  being  used  up  to  meet  the  demand  for 
petroleum  that  stocks  have  been  draAvn  on  each  year  for  some 
time  past  to  keep  up  with  the  demand.  In  1916  it  is  estab- 
lished that  the  crude  oil  in  storage  was  drawn  up  to  the 
extent  of  24,000,000  barrels,  and  in  1917  the  crude  oil  stocks 
were  further  reduced  by  approximately  24,000,000  barrels. 
Although  the  figures  as  stated  above  are  not  very  optimistic, 
yet  the  past  experience  of  the  petroleum  industry  indicates 
that  the  demand  has  always  been  met,  and  that  it  is  nothing 
unusual  for  both  the  producer  and  refiner  to  face  apparent 
shortages  and  to  find  the  medium  of  keeping  abreast  of  the 
demand. 

Refining  and  Yield  of  Gasolene 

"Assuming  that  the  production  of  oil  in  191S  will  increase 
in  the  same  proportion  as  the  production  of  1917  over  1916, 
the  problem  then  becomes  one  of  comparing  the  estimated 
consumption  or  demand  of  gasolene  with  the  possible  produc- 
tion of  gasolene  from  crude  run  by  the  refineries  throughout 
the  country.  It  is  generally  estimated  that  the  234  refineries 
throughout  the  country  have  a  still  capacity  for  running  crude 
oil  considerably  in  excess  of  the  available  production  figures, 
so  that  it  is  generally  understood  there  is  no  shortage  in 
refinery  still  capacity  at  the  present  time  io  take  care  of  the 
maximum  crude  oil  production.  From  a  study  of  the  avail- 
able figures  it  is  apparent  that  approximately  s,".  per  cent,  of 
the  crude  oil  produced  in  this  country  is  ru)^  in  refinery  stills. 


The  Gasolene  Situation 


13 


and  that  15  per  cent,  of  the  crude  oil  produced  goes  direct  to 
railroads  and  others  for  fuel  purposes.  A  chart  showing  the 
production  of  crude  and  the  gasolene  yields  from  crude  and 
from  other  sources  would  be  about  as  follows: 

Estimate 


Production  in  1918 

Crude  Produced  and  Values  1917,  li'/c  (42j  388,000,000 

Crude  Run  at  Renneries  S2%  {^2)  318,100,000 

Yield  of  Gasolene   21  per  cent 

Gasolene  (50)  56,100,000 

Casing  Head  and  Absorption   5,000,000 


61,100,000 

Consuini>4;ion  in  1918 

Domestic  Autos  (4,500,0Gu )  .  . '  Barrels  45,000,000 

Industrial  and  Other  Barrels        G, 100,000 

Export  and  War   Barrels  13,000,000 


63,100,000 

Shortage   Barrels  3,000,000 

Stock,  January  1,  1918  Barrels  6,000,000 


"Although  the  above  figures  indicate  that  the  available 
gasolene  from  crude  oil  produced  in  the  United  States  and 
the  gasolene  from  other  sources  for  the  year  1918  is  short 
of  the  actual  demand,  it  is  possible  that  this  shortage  would 
be  made  up  from  the  stocks  of  gasolene  available  from  crude 
oil  drawn  froin  storage,  and  to  some  slight  extent  from  the 
yield  of  gasolene  from  Mexican  crude,  which  was  not  included 
in  the  figures  given.  The  problem  of  facing  an  apparent 
shortage  is  simply  a  repetition  of  the  past  history  of  the 
petroleum  industry,  and  if  the  problem  is  left  in  the  hands 
of  the  men  who  have  been  vital  in  the  building  up  of  the 
industry  in  the  past,  the  supply  for  the  year  1918  will  un- 
doubtedly be  very  amply  met." 

Position  of  Group  in  industry 
Bearing  upon  the  position  witiiin  the  oil  industry 
of  the  Standard  Oil  companies  and  recalling  that  the 
gasolene  business  is  now  the  basic  factor  of  the  oil 
trade,  the  following  excerpt  from  the  recent  gasolene 
report  of  the  Federal  Trade  Commission  is  illumin- 
ating : 

"On  the  basis  of  tank-wagon  sales  in  towns  having  a 
population  of  2,500  or  over,  estimates  have  been  made  of  the 
relative  volume  of  the  sales  of  gasolene  by  the  several  Stand- 
ard companies  in  their  respective  territories.  As  these  esti- 
mates are  based  upon  only  a  part  of  the  total  business,  and 
as  the  Commission  is  not  in  possession  of  complete  statistics 
of  the  so-called  independents,  the  estimates  must  be  taken 
with  allowance  for  a  small  margin  of  error.  The  figures, 
however,  are  believed  to  be  approximately  the  correct  per- 
centages, and  indicate  fairly  accurately  the  comparative  posi- 
tion of  the  several  Standard  companies  in  their  respective 
territories.  They  show  that  the  Standard  companies  control 
approximately  65  per  cent,  of  the  gasolene  business  through- 
out the  United  States.  Although  their  ]iercentage  of  control 
has  declined  since  1906,  when  testimony  taken  in  the  Standard 
Oil  case  showed  them  to  possess  approximately  8  5  per  cent, 
of  the  business,  nevertheless  they  still  occupy  a  dominant 
position  in  the  trade,  and  the  aggregate  volume  of  their  busi- 
ness has  increased. 


14 


Marketing:  Territory 


"Moreover,  a  material  part  of  the  apparent  decline  in 
percentage  of  control  by  Standard  companies  is  due  to  the 
fact  that  certain  large  companies,  in  which  various  Standard 
stockholders  have  considerable  interests,  are  classed  as  'inde- 
pendents' in  this  report.  Standard  stockholders  owned  about 
30  per  cent,  of  the  stock  of  the  Tidewater  Oil  Company  and 
about  25  per  cent,  of  the  stock  of  the  Texas  Company,  which 
are  here  classed  as  'independent.' 

"Another  company  included  among-  the  'independents'  in 
1915  is  the  Midwest  Refining  Company,  though  it  is  known 
to  have  operated  in  such  a  way  as  to  have  made  it  an  ally 
rather  than  a  competitor  and  is  now  reported  to  have  come 
nnder  the  direct  control  of  the  Imperial  Oil  Company  (Ltd.) 
of  Canada,  which  is  a  Standard  concern.  These  facts  indicate 
that  the  statement  that  Standard  companies  controlled  ap- 
proximately 65  per  cent,  of  the  gaisolene  business  of  the  United 
States  is  conservative.  It  does  not  mean  that  all  the  remain- 
ing: 35  per  cent,  of  the  business  was  strictly  competitive. 

"Estimated  percentages  of  the  total  quantity  of  gasolene 
sold  in  the  several  Standard  marketing  territories  by  the 
geveral  Standard  companies  operating  therein  during  1915: 

Per  Cent,  of  Total 


Territory  of —                                             Sales  of  Gasolene 

Standard  of  New  York   70 

Atlantic  Refining  Company   70 

Standard  of  Ohio   70 

Continental  Oil  Company   63 

Standard  of  New  Jersey   60 

Standard  of  Nebraska   60 

Standard  of  Indiana   60 

Standard  of  Kentucky   50 

Standard  of  California   48 

Standard  of  Louisiana   33 

Magnolia  Petroleum  Company   27 


"At  a  hearing  by  the  Commission  on  June  12  and  13,  1915, 
representatives  of  the  Standard  Oil  Company  of  New  York, 
stated  that  70  per  cent,  was  approximately  correct  for  their 
territory  to  the  best  of  their  knowledge.  Representatives  of 
the  Standard  of  Ohio  also  stated  that  according  to  oil  inspec- 
tion records  in  Ohio,  their  company  sold  about  65  per  cent, 
of  the  gasolene  in  that  State,  which  figure  is  only  a  little 
less  than  the  Commission's  estimate.  The  Indiana  percentage, 
it  should  be  observed,  applies  to  the  whole  territory,  but  in 
some  States — as  in  Kansas  and  Iowa — the  percentage  was 
somewhat  lower.  Indeed,  the  Indiana  company's  volume  of 
sales  for  Kansas,  computed  on  the  basis  of  tank-wagon  sales 
at  towns  of  2,500  or  over,  w^as  only  46  per  cent,  in  1915." 

Petroleum  Production  and  Prices 

The  amount  of  crude  petroleum  marketed  in  1917 
established  a  new  high  record  according  to  the  pre- 
liminary estimate  of  the  United  States  Geological  Sur- 
vey. The  Government  figures  covering  petroleum 
consumption  for  the  past  six  years  are  as  follows: 

Bbls.  42  Gals. 


1917   341.800,000 

  300,767,158 

1915   281,104,104 

1914   265,762,535 

1913   248,381.744 

1912   237,298,340 


Crude  Oil  Prices 


15 


The  Geological  Survey's  monthly  summary  of  field 
statistics  gives  the  amount  of  crude  oil  in  storage  on 
December  31,  1917,  as  120,616,240  barrels  in  all  fields 
outside  of  California,  while  the  latter  had  32,450,465 
barrels  above  ground,  making  a  total  of  153,066,705 
barrels  at  the  close  of  last  year.  These  figures  com- 
pare with  125,039,125  barrels  on  December  31,  1916, 
in  all  fields  east  of  the  Rocky  Mountains  and  44,036,190 
barrels  in  California,  making  a  total  storage  on  De- 
cember 31,  1916,  of  169,075,415  barrels. 

TJiis  withdrawal  of  practically  1,500,000  barrels 
monthly  on  reserve  stocks,  together  with  the  neces- 
sity for  stimulating  production,  which  had  begun  to 
lag  because  of  the  scarcity  and  high  cost  both  of 
labor  and  drilling  materials,  resulted  in  a  steady  up- 
ward movement  for  all  grades  of  crude  oil  throughout 
1917  and  into  1918,  when  $4  a  barrel  for  Pennsylvania 
crude  and  $2.25  a  barrel  for  Mid-Continent  oil  estab- 
lished new  high  levels  for  the  industry.  The  course 
of  the  crude  oil  markets  for  the  principal  grades  in 
the  last  three  years  is  shown  in  the  following  tables: 

PENNSYLVANIA  CRUDE 

Produced  in  Pennsylvania,  New  York,  West  Virgrinia  and 
Southeastern  Ohio 
1918  1917  1916 


High 

Low 

Higrh 

Low 

Higrh 

Low 

January .  .  . 

$3.75 

$3.75 

$3.05 

$2.85 

$2.35 

$2.25 

February .  . 

4.00 

3.75 

3.05 

3.05 

2.40 

2.35 

4.00 

4.00 

3.05 

3.05 

2.60 

2.40 

4.00 

4.00 

3.10 

3.05 

2.60 

2.60 

4.00 

4.00 

3.10 

3.10 

2.60 

2.60 

3.10 

3.10 

2.60 

2.60 

July  

3.10 

3.10 

2.60 

2.50 

August .... 

3.50 

3.10 

2.50 

2.30 

September . 

3.50 

3.50 

2.40 

2.30 

October.. .  . 

3.50 

3.50 

2.60 

2.40 

November . 

3.50 

3.50 

2.60 

2.60 

December . 

3.75 

3.50 

2.85 

2.60 

MID- CONTINENT 
Produced  in  Oklahoma,  Kansas  and  North  Texas 


1918                        1917  1916 

Hig^h  Low  Hig:h  Low  Higrh  Loav 

January...  $2.00  $2.00  $1.70  $1.40  $1.30  $1.20 

February..  2.00  2.00  1.70  1.70  1.30  1.30 

March   2.25  2.25  1.70  1.70  1.55  1.30 

April   2.25  2.25  1.70  1.70  1.55  1.55 

May   2.25  2.25  1.70  1.70  1.55  1.55 

June   —  —  1.70  1.70  1.55  1.55 

July   —  —  1.70  1.70  1.55  .31 

August   —  —  2.00  1.70  1.25  .90 

September.  —  —  2.00  2.00  .90  .90 

October  ...  —  —  2.00  2.00  .90  .90 

November  .  —  —  2.00  2.00  1.00  .90 

December..  —  —  2.00  2.00  1.40  1.00 


16 


Crude  Oli  riic'c.-« 


Price  changes  on  other  grades  of  oil  are  as  fol- 

1918  lOi:  1916 


1 

Somerset   

Hig-h 

Low 

Hig-h 

Low 

High 

Low 

$3.60 

.152.55 

$3  .,55 

$2.20 

$3.40 

$2.05 

Wooster  

3.58 

2.38 

2.88 

1,90 

1.80 

1.50 

2.08 

3.08 

1.58 

1.73 

1.33 

lUinois   

2.33 

2.18 

2.18 

1.62 

1.83 

1.47 

Princeton   

3.32 

2.12 

2.12 

1.62 

1.83 

1.47 

1.98 

1.98 

1.43 

1.68 

1.33 

Indiana   

3.18 

l.?J8 

1.98 

1.53 

1.58 

1.18 

Healdton   

1,43 

1.31) 

1.20 

.75 

.80 

.40 

3.68 

3.43 

2.43 

3.08 

3.13 

1.73 

North  Texas    (light)  .  .  .  . 

2.25 

3.00 

3.00 

1.40 

1.55 

.90 

North  Texas   (heavy) .  .  , 

1.30 

1.05 

1.05 

.75 

.80- 

.40 

North  Louisiana  (light)  . 

2.25 

2.09 

2.00 

1.40 

1.55 

.90 

North  Louisiana  (heavy) 

1.35 

1.00 

1.00 

.85 

.90 

.65 

Humble  

1.35 

1.00 

1.00 

.80 

1.00 

.60 

1.35 

1,00 

1.00 

.80 

1.00 

.45 

1.35 

1.00 

1.00 

.80 

1.00 

.60 

California    (14   degrees)  . 

1.33 

.98 

.98. 

.73 

.73 

.43 

California    (25  degrees)  . 

1.32 

1.07 

1.07 

.83 

1.07 

.621/2 

Wyoming  (Elk  Basin)  .  . 

1.85 

1.70 

1.70 

1.35 

1.35 

.60 

Wyoming  (Big  Muddy)  . 

1.50 

1.30 

1.20 

.90 

Mr.  Requa  in  a  letter  to  the  Petroleum  War  Serv- 
ice Committee,  dated  May  17,  1918,  said  the  Govern- 
ment's disposition  v/as  to  favor  existing  crude  oil 
prices  as  maximums  and  to  discourage  further  ad- 
vances or  bonuses.  This  was  received  favorably  as  a 
stabilizing  factor. 

Gasolene  Prices 

Conforming  to  the  changes  in  the  crude  oil  mark- 
ets, the  price  of  gasolene  advaneedi  until  a  maximum 
price  of  24  cents  wholesale  was  reached  in  the  New^ 
York  market  in  March,  1916.  There  was  a  recession 
from  this  figure  to  22  cents  and  then  a  rise  back  to 
24  cents  in  March,  1917,  at  which  price  the  local 
market  has  remained  stationary  for  more  than  a  year. 
In  the  Mid-Continent  region  prices  advanced  steadily 
throughout  1917  and  one  price  advance  in  April,  1918, 
brought  the  wholesale  price  to  22%  cents  a  gallon 
Chicago  basis.  The  movements  of  the  gasolene  m.ark- 
ets  at  New  York  and  Boston,  are  shown  as  follows: 


NEW  YORK  GASOLENE  PRICES   {Garage  Basis) 


1918 

191 

1916 

Hif^h  Low 

Hi^h 

Low 

Hig^h  T 
$  .22  $ 

ow 

January .  .  . 

$  .24  $ 

.24 

$  .23 

$  .22 

.21 

February . . 

.24 

.24 

.23 

.23 

.22 

.34 

.24 

!2i 

.24 

.24 

.23 

April  

.24 

.24 

.24 

.24 

.24 

May  

.24 

.24 

.'24 

.24 

.24 

June  

.24 

.24 

.24 

July  

24 

.24 

.24 

.24 

August .... 

.24 

.24 

.2  4 

.23 

Septeml:»er . 

.23 

.22 

October.  .  .  . 

„24 

.24 

'*2 

.22 

November  . 

24 

.24 

,22  ' 

.22 

December  . 

.24 

.24 

00 

.22 

Refining  Statistics 


17 


CHICAGO  GASOLENE  PRICES   (Tank  Wagon  Basis) 
1918  1917  1916 


High 

JjOw 

High 

Low 

±iign 

January .  .  .  . 

$  .31  « 

?  .21 

$  .19 

<e  171/ 

•P  .l"/2 

February  .  .  . 

.21 

.21 

.19 

1  Q 
.111 

1  71/. 

.1  ^y2 

1  71/» 

.A '  y2 

March 

21 

.21 

.19 

.19 

•18% 

.17% 

April  

.221/2 

.21 

.20 

.19 

.181/2 

.181/2 

May  

.20 

.20 

.181/2 

.181/2 

June  

.20 

.20 

.181/2 

.181/2 

July  

.20 

.20 

.181/2 

.181/2 

.21 

.20 

.181/2 

.171/2 

September .  . 

.21 

.21 

.i7y2 

.161/2 

October  

.21 

.21 

.161/2 

.151/2 

November  .  . 

.21 

.21 

.151/2 

.151/2 

December. .  . 

.21 

.21 

.171/2 

.151/2 

Refining  Statistics 

The  output  of  petroleum  refineries  in  the  United 
States  for  1917,  as  compiled  by  the  Bureau  of  Mines, 
Department  of  Interior,  shows  an  impressive  growth 
over  previous  years  as  follows: 


,  1917  1916  1914 

Crude  Run  (bbls.)  ..  .  301,319,318  246,992,015  191,262,724 

Oils  Purchased  &  Re- 
run  (bbls.)   14,897,670   

Gasolene  (g^allons). .  .  2,729,712,033  2,058,880,596  1,460,037,200 

Kerosene  (gallons)  .  .  1,602,015,103  1,455,495,732  1,935,374,800 

Gas  and  Fuel  (gals.)  6,288,430,581  4,663,895,284  3,733,491,050 

iTubricants    (gallons)  721,644,821  624,541,195  517,426,050 

V^ax    (pounds)   441,107,964  386,180,898   

Coke    (tons)   484,180  405,319   

Asphaltum    (gallons)  690,279  716,490  465,157 

Residuals  (gallons)..  663,149,870  239,244,468  148,850.750 

Loss  (barrels)    12,273,850  ,  10,008,517   

Daily  Average — Crude 

Runs  (barrels)  .  .  .  837,211  674,842  524,000 

Stocks  on  Hand  at  Refineries 

Dec.  31,  1917  Sept.  30,  1917  Dec.  31,  1916 

Crude  Oil   (barrels)  .  11,638,433  10,925,892  20,370,414 

Gasolene    (gallons)  .  .  412,256,833  287,758,562  326,884,127 

Kerosene   (gallons)  .  .  497,750,082  508,461,071  476,913,989 

Gas  and  Fuel  (gals.)  577,899,112  633,216,982  720,560,199 


The  figures  indicate  that  the  amount  of  raw  ma- 
terials consumed  in  the  industry  increased  from  191,- 
262,724  barrels  in  1914  to  246,992,015  barrels  in  1916, 
and  301,319,318  barrels  in  1917.  This  increase  in  1917 
is  equal  to  57 1/^  per  cent,  over  1914  and  approximately 
22  per  cent,  over  the  year  1916.  In  1917  refinery  con- 
sumption of  crude  oil  averaged  837,211  daily.  In  1909, 
'the  daily  average  was  330,891  barrels.  The  amount 
of  crude  oil  stored  at  refineries  at  the  close  of  1917 
which  had  decreased  8,731,981  barrels,  equal  to  42.86 
per  cent,  of  the  amount  in  storage  at  the  close  of  1916. 

Gasolene  production  in  1917  showed  an  increase  of 
670,831,437  gallons  over  1916  production  and  1,269,- 


18 


Export  Statistics 


674,833  gallons  over  1914  production,  the  latter  in- 
crease being  equal  to  87  per  cent.  Stocks  of  gasolene 
on  hand  at  the  refineries  decreased  from  326,884,127 
gallons  at  December '31,  1916,  to  287,758,562  gallons 
at  September  30,  1917,  and  then  showed  a  rapid  in- 
crease to  412,256,833  gallons  at  the  close  of  1917. 

Of  the  refined  products,  fuel  oil  and  gas  oil  showed 
the  largest  gain  in  output,  the  increase  being  equal 
to  35  per  cent,  over  1916  and  69  per  cent,  over  1914. 
The  small  increase  in  the  amount  of  kerosene  pro- 
duced reflects  the  improvement  in  refinery  methods 
to  increase  the  yield  of  gasolene. 

The  number  of  refining  plants  in  operation  through- 
out 1917  was  234,  with  75  in  process  of  construction. 
This  compares  with  176  refining  plants  in  1914  and 
124  plants  in  1909. 

Growth  of  Transportation  Equipment 

Coincidentally  there  has  been  a  parallel  expansion 
in  the  means  for  transporting  refined  products.  Tht,,: 
number  of  tank  cars  in  use  rose  from  24,701  in  1913 
to  44,208  in  1915  and  69,514  at  the  close  of  1917.  Oil 
tankships  under  American  registry  have  increased 
from  60  vessels  of  416,000  tons  deadweight  in  1914  to 
170  vessels  of  1,180,000  tons  deadweight  capacity  at 
the  close  of  1917. 

The  Export  Trade 

The  expansion  of  the  country's  mineral  oil  export 
trade  during  the  last  six  calendar  years  is  shown  in 
the  following  table: 

Gallons  Values 

1917   2,645,363,368  $353,027,075 

1916   2,607,482,366  201,721,291 

1915   2,328,725,749  142,941,669 

1915   2,329,575,617  142,972,322 

1914   2,240,031,235  139,900,587 

1913   2,136,565,721  149,316,409 

1912   1,883,479,897  124,210,382 

Changes  in  the  character  of  the  export  trade  dur- 
ing the  last  six  years  is  shown  in  the  following  table 
of  relations  of  the  different  grades  to  the  general 
totals  by  percentage: 

Gasolene, 

Illiiminatingr  Oil       Naphthas,  Etc.      Liibricatingr  Oil 
Volume  Value        Volume  Value        Volume  Value 
1917.....       24.67      19.19  15.73      36.82  10.62  22.77 

1915   36.10      35.31  12.90      22.70  12.90  22.70 

1914   45.34      46.21  8.58      18.73  8.58  18.73 

1913   53.08      49.12  9.77      19.98  8.05  17.75 

1912   54.48      ^9.98  9.99      16.47  11.49  22.78 


The  American  Oil  Fleet 


19 


1917. 
1916. 
1915. 
1914. 
1913. 
1912. 


Gas  and  Fuel 
Oil-Residuum 
Volume  Value 
43.50  18.20 
36.97  13.46 
30.57  15.57 
31.40  13.74 
30.00  7.45 
14.14  5.31 


Volume  Value 

6.47  3.02 

6.60  3.48 

6.70  3.00 

5.57  3.55 

9.10  5.70 

10.02  5.15 


Crude  Oil 


The  American  Oil  Fleet 


One  year  after  the  outbreak  of  the  world  war  there 
were  454  tankships  in  commission,  of  which  three- 
fourths  were  under  American  and  British  registry. 
More  than  a  dozen  tankships  have  been  sunk  by  sub- 
marines, but  two  tankships  have  been  launched  in 
American  ship  yards  for  every  tanker  sunk  and  at 
September  1,  1917,  there  were  more  than  forty  tank- 
ships  under  construction  in  this  country. 

At  the  end  of  the  year  1914  the  tank  steamers  un- 
der American  registry  numbered  about  eighty  (exclu- 
sive of  barges)  of  278,837  gross  tons  and  approxi- 
'^mately  416,000  tons  deadweight,  which  at  the  time 
represented  only  about  10  per  cent,  of  the  total  steel 
tonnage  of  the  United  States,  excluding  the  Great 
Lakes  and  sailing  vessels. 

Since  the  beginning  of  1915  there  have  been  built 
in  this  country  57  tankers  (exclusive  of  barges)  of 
371,900  gross  tons  and  519,200  tons  deadweight,  thus- 
more  than  doubling  the  American  tank  steamer  ton- 
nage. It  will  also  be  noted  that  the  average  tonnage 
of  the  individual  vessels  shows  a  great  increase  over 
that  of  the  vessels  previously  built. 

In  addition  to  the  extensive  building  program  car- 
ried on,  a  marked  addition  to  the  American  tanker 
fleet  was  made  under  the  provisions  of  the  Panama 
Canal  Act  of  August  18,  1914,  by  means  of  which  forty 
foreign  built  tankers,  aggregating  over  190,000  gross 
tons  or  285,000  tons  deadweight,  have  been  trans- 
ferred to  American  registry. 

The  total  number  of  American  tankers  now  in 
service  is  therefore  about  170,  having  a  total  gross 
tonnage  of  823,200  and  a  total  deadweight  carrying 
capacity  of  1,180,000  tons.  Thus  it  will  be  seen  that 
during  the  recent  period  of  activity  the  number  of 
tankships  has  been  increased  112  per  cent.,  the  gross 
'  tonnage  increased  185  per  cent,  and  the  total  dead- 
weight tonnage  increased  185  per  cent.  Not  only  is 
this  the  case,  but  it  is  also  found  that  the  tank  steam- 
er tonnage  is  now  close  to  20  per  cent,  of  the  total 
^  steel  American  tonnage  (exclusive  of  the  Lakes),  as 


20 


The  American  Oil  Fleet 


against  10  per  cent,  at  the  beginning  of  1915,  this 
indicating  that  the  greatest  of  the  recent  progress  in 
shipbuilding  has  been  in  the  construction  of  tankers 
and  that  the  growth  of  the  oil  industry  has  demanded 
for  them  a  prominent  part  in  our  shipbuilding  pro- 
gram. 

In  addition  to  this  impressive  fleet  of  tankers,  we 
now  have  under  construction  in  the  United  States  a 
total  of  sixty-four  tank  vessels,  representing  496,680 
gross  tons  and  575,750  tons  deadweight,  marking  the 
greatest  shipbuilding  activity  in  the  history  of  the 
country. 


Angrlo-American  Oil  Company 


21 


ANGLO-AMERICAN  OIL  COMPANY,  Ltd. 

The  Anglo-American  Oil  Company,  Ltd.,  was  incorporated 
In  England  in  1888  and  from  that  time  down  to  1911  was  the 
sole  distributor  of  Standard  Oil  Company's  products  in  Great 
Britain  and  Ireland.  The  Standard  Oil  Company  of  New 
Jersey  at  that  time  owned  all  the  shares.  In  1911  the 
United  States  Supreme  Court  ordered  a  dissolution  of  the 
Standard  Oil  Company  of  New  Jersey,  and  as  a  result  the 
shares  of  the  Anglo-American  Oil  Company,  Ltd.,  were  dis- 
tributed as  a  dividend  to  the  shareholders  of  the  Standard 
Oil  Company  of  New  Jersey,  share  for  share. 

Capital  Stock — The  capital  Is  £3,000,000  sterlmg  in  shar% 
warrants  to  the  bearer  of  the  par  value  of  £1  each.  The 
capital  was  increased  from  £1,000,000  to  £2,000,000  by  a 
100%  stock  dividend  distributed  November  26,  1913  One 
million  additional  shares  were  offered  for  subscription  at 
$7.50  (150%  of  par)  between  February  14  and  February  28, 
1918,  shareholders  thus  enjoying  "rights"  to  the  extent  of 
50%  of  their  holdings. 

Shareholders  in  the  United  Kingdom  received  scrip  cer- 
tificates entitling  them  to  subscribe  to  the  new  shares  at 
£1:11:6  at  the  conclusion  of  the  war,  dividends  on  these  re- 
served shares  to  be  impounded  meanwhile  for  the  benefit  of 
the  British  subscribers. 


Dividends— 

-The  i 

company  has 

paid 

dividends  semi- 

-annually 

since  the  dissolution  as  follows 

1918— Feb  28 

50% 

**Rig:hts" 

1914- 

—Jul  2 

10% 

$973,330 

Jan  15 

15% 

$1,425,000 

Jan  15 

10% 

973,330 

1917— Jul  16 

15% 

1,425,000 

1913- 

—Nov  26 

100% 

Stk.  Div. 

Jan  15 

10% 

950,000 

Jul  15 

10% 

486,660 

1916 — Jul  15 

10% 

950,000 

Jan  15 

15% 

729,990 

Jan  15 

10% 

945,000 

1912- 

—Jul  15 

10% 

486,660 

1915 — Jul  1 

10% 

960,000 

Apr  15 

10% 

486,660 

Jan  2 

10% 

973,330 

Total  cash  dividends  since  dissolution  (to  June  1,  1918) 
$11,764,960. 


Note — Changes  in  total  amounts  are  due  to  variations  in 
rate  of  exchange  on  London. 

Business — The  company  is  the  largest  and  most  important 
petroleum  company  operating  in  the  United  Kingdom.  Its 
sales  include  refined  oil,  gasolene,  lubricating  oil,  gas  and 
fuel  oils  and  paraffin  wax.  The  large  and  increasing  de- 
mands for  some  of  its  products,  notably  gasolene  and  fuel 
oils,  have  required  an  extension  of  its  plants  and  facilities 
and  particularly  the  number  of  ocean-going  tankers  for 
transportation  of  its  various  products  from  the  producing 
countries. 

Plant  and  Equipment — The  company  owns  all  its  large 
ocean  receiving  stations  with  facilities  for  storing  full  car- 
goes from  ocean  tankers  and  in  addition  owns  and  operates 

over  660  interior  distributing  stations  in  Great  Britain  and 
Ireland  for  the  sale  and  distribution  of  its  various  products. 
It  also  owns  over  1,200  railway  tank  wagons  and  a  large  and 
growing  fleet  of  motor  propelled  vehicles  for  road  trans- 
portation. 

For  handling  the  trade  on  the  interior  waterways  it  owns 
and  operates  over  50  barges  and  tugs  and  for  coastwise  trade 
employes  its  own  fleet  of  cargo  and  tank  steamers  trading  to 
every  important  port  in  the  Kingdom. 

The  largest  single  investment  is  comprised  in  the  fleet  of 
ocean-going  tank  steamers,  which  has  always  included  some 


22 


Anglo-American  Oil  Compi*,„^ 


of  the  largest  tankers  afloat.    Since  the  inception  of  the  war 
the  company  has  added  about  100,000  tons  to  its  ocean  fleet 
which  now  comprises  the  following  vessels: — 
S.S.  "Appalachee"     S.S.  "Iroquois"  S.S.  "Suwanee" 

"Ashtabula"  "  "Lackawanna"  "  "Strathflllan" 
"Cheyenne"  "    "LufCwell"  "  "Silvertown" 

"Cuyahoga"  "    "Luffworth"  "  "Tioga" 

"Cadallac"  "    "Narragansett"    "  "Tonawanda" 

"Calcutta"  "    "Navahoe"  "  "Tuscarora" 

"Delaware"  "    "Oneida"  "  "Tamarac" 

"Dakotah"  "    "Osceola"  "  "Winnibago" 

"Earl  of  Elgin"     "    "Ottawa"  "    "Westward  Ho" 

**    "Genesee"  "  "Potomac" 

During  the  period  of  the  war  a  number  of  these  ships  ar« 
In  the  Admiralty  service. 

The  total  oil  carrying  capacity  of  this  large  fleet  is  over 
175,000  tons. 

The  predominating  position  of  this  company  in  the 
marketing  field  is  evidenced  by  the  preponderance  of  its 
imports  of  various  classes  of  oils.  Outside  of  fuel  oil  for 
Admiralty  use,  Great  Britain  imports  upwards  of  600,000,000 
gallons  of  petroleum  products  annually,  of  which  the  Anglo- 
American  Oil  Company  handles  between  55  and  60  per  cent. 

Earnings — The  company  furnished  its  first  official  Earnings 
Statement  in  its  financial  report  for  1916  (issued  in  October, 
1917).  Figures  are  converted  into  U.  S.  currency  on  the 
normal  basis  of  $4.86  2-3   as  follows: —  » 

Profits  from  Operations  •   $5,464,417 

Deductions: — 

Depre.  on  Steamships,  Plants,  etc. .  .  $1,375,692 

Interest  and  Exchange   63,131 

Income  Tax    1,082,192 

  2,521,015. 


Available  for  Dividends   $2,943,402 

Earnings  available  for  dividends  after  the  heavy  British 
war  taxes  were  approximately  31%,  which  compares  with 
indicated  earnings  of  32%  in  1915  and  average  earnings  of 
441/^%  in  the  two  years  prior  to  the  imposition  of  war  taxes. 
In  considering  the  company's  war  time  earnings,  considera- 
tion must  be  given  to  the  fact  that  during  the  year  under 
review,  allowances  exceeding  $250,000  were  made  to  1,242 
employees  serving  with  the  colors. 

The  expansion  of  the  company's  business  in  spite  of  the 
handicap  of  war  time  conditions  in  England  is  shov/n  in  the 
comparative  balance  sheets  for  the  years  ending  December 
31,  1916,  1915  and  1914: — 

Assets:  1916  1915  1914 

Freehold  at  Cost   $629,176.17        $614,785  .S')72,988 

Constr'tion   &  Equipm't    3,229,078.15        2,639,654  2,168,670 

Marine    Equipment   6,184,858.30        4,063,480  3,314,484 

Accts.    Receivable   9,607,575.01        8,709,391  5,803,903 

Merchandise  Inventory.  12,879,987.21  7,383,970  5,397,787 
Investments,  at  Cost...     2,418,776.13  918,404  919,013 

Cash   260,333.51        2,238,355  3,757,703 


Total    Assets  $35,209,784.48    $27,023,039  $21,934,548 

Liabilities: 

Capital   $9,732,000.00      $9,732,000  $9,732,000 

Accounts   Payable              13,182,729.33        6,091,353  3,454,553 

Div.  Decl'd  and  Unpaid    1,032,178.60  1,029,090   

Reserve  Account   5,601,809.36] 

Surplus                                  5,661,067.19  J    10,170.596  8,747,995 

Total   Liabilities  $35,209,784.48    $27,023,039  $21,934,548 


Atlantic  Refining  Company 


23 


In  their  report  to  shareholders,  the  Directors  stated: 
"It  will  be  noted  that  the  investment  in  steamships  haa 
been  considerably  increased.  This  expenditure  has  been  ne- 
cessitated in  consequence  of  the  Government  having  requisi- 
tioned a  large  proportion  of  your  vessels.  Part  of  the  re- 
quisitioned tonnage  was  replaced  by  chartering  other  vessels, 
but  the  rates  of  freight  demanded  were  so  exorbitant  that 
your  directors  considered  it  advisable  to  purchase  additional 
stearfiers,  where  possible,  and  they  feel  that  this  expenditure 
will  be  well  repaid, 

"It  will  be  noted  also  that  the  Inventory  figures  and  tho 
Accounts  Receivable  are  both  considerably  higher  than  last 
year.  This  has  been  caused  partially  by  slightly  increased 
stocks,  but  mainly  by  the  increased  cost  of  goods  purchased, 
and  the  higher  freight  thereon,  resulting  in  higher  values 
of  sales. 

"Since  our  last  general  meeting  many  additional  members 
of  the  staff  have  joined  the  forces,  and  the  total  number 
since  the  commencement  of  the  war  now  amounts  to  1,945 
and  of  this  number  1,242  are  receiving  allowances  amounting 
at  the  present  time  to  about  £48,000  per  annum." 

The  steady  expansion  of  the  company  since  the  dissolution 
is  illustrated  by  the  following  analysis  of  its  financial  state- 
ments:— 

Marine     Marketing    Net  Quick  Surplus 
Equipment  Equipment      Assets     and  Reserves 


1916   $6,184,858  $3,858,154  $10,953,764  $11,262,876 

1915   4,063,480  3,254,439  12,129,677  10,170,596 

1914   3,314,484  2,741,658  12,423,853  8,747,993 

1913   3,102,406  2,351,448  12,145,658  *7,867,532 

1912   2,624,697  1,890,733  8,490,090  8,139,020 


*After  declaration  of  100%  stock  dividend. 

This  table  in  connection  with  the  heavy  increase  in  the 
company's  inventory  account  as  the  war  progressed  reflects 
the  necessity  under  which  it  labored  to  increase  its  plant  and 
this  in  turn  caused  a  shortage  of  cash,  which  was  remedied 
by  extending  the  shareholders  subscription  rights  at  150% 
of  par.  As  less  than  100,000  shares  are  held  in  Great  Britain, 
the  exercise  of  these  subscription  rights  has  brought  the 
company  nearly  $7,000,000  in  new  money.  This  undoubt- 
ly  has  placed  the  company  in  an  easy  cash  position 
and  will  enable  it  to  augment  its  fleet  and  its  other  facilities 
for  keeping  up  with  its  continually  expanding  business.  This 
large  accession  of  new  capital  should  give  a  strong  impulse 
to  an  already  large  earning  power. 

Oflacers — F.  E.  Powell,  Chairman. 

James  Hamilton,  Vice-Chairman. 
A.   H.   Hewett,  Secretary. 

Directors — The  above  mentioned  ofRcers  and  in  addition: 
W.  P.  MacKendrick. 

Transfer  Office — 36-38  Queen  Anne's  Gate,  London,  S.  W.. 
EJngland. 

Fiscal  Agents — Guaranty  Trust  Co.,  140  Broadway,  New 
York,  U.  S.  A. 

Annual  Meeting: — Last  week  in  June, 


ATLANTIC  REFINING  COMPANY 

The  Atlantic  Refining  Company  was  incorporated  under  the 
laws  of  Pennsylvania  in  1870. 

Capital  Stock — The  capital  stock  la  $5,000,000;  having  been 
increased  from  $400,000  in  1892.     Par  value.  $10a. 


24 


Atlantic  Refining  Company 


Dividends — At  the  time  of  the  dissolution  the  company 
had  outstanding  Notes  Payable  of  $4,216,871  as  of  December 
31,  1911.  Until  this  indebtedness  was  liquidated,  the  com- 
pany refrained  from  paying  dividends,  which  were  not  inau- 
gurated until  December  15,  1914.     The  dividend  record  since 


that 

date  has 

been 

as  follows: 

1918- 

— Jun  15 

5% 

jf;25a,ooo 

1916 — Jiin  15 

5% 

$250,000 

Maris 

5% 

250,000 

Maris 

5% 

250,000 

1917- 

—Dec  15 

5% 

250,000 

1915 — Dec  15 

5% 

250,000 

Sep  15 

5% 

250,000 

Sep  IS 

5% 

250,000 

Jun  15 

5% 

250,000 

Jun  15 

5% 

250,000 

Marl5 

5% 

250,000 

Mar  15 

5% 

250,000 

1916- 

—Dec  15 

5% 

250,000 

1914 — Dec  15 

5% 

250,000 

Sep  15 

5% 

250,000 

$3,750,000 

Business — The  company  originally  confined  itself  to  the 
refining  and  marketing  of  oils,  specializing  in  lubricants,  of 
which  it  is  the  world's  largest  manufacturer.  During  1916, 
however,  the  company  decided  to  include  producing  and 
transporting  to  its  activities  and  formed  the  Atlantic  Oil 
Producing  Company  and  the  Atlantic  Oil  Shipping  Company, 
which  are  described  hereinafter. 

The  company  makes  every  known  product  from  crude  oil 
and  is  in  the  asphalt  and  road  oil  business  extensively.  The 
company  also  maintains  an  extensive  marketing  system  for 
distributing  its  products  throughout  Pennsylvania,  Delaware 
and  New  England,  which  employs  more  than  200  motor 
trucks,  a  number  of  horse  drawn  vehicles  and  barges,  tug- 
boats and  other  types  of  water  craft  for  transporting  petro- 
leum products  over  inland  waterways.  Since  1915,  the  com- 
pany's doniestic  gasolt^ne  sales  have  been  running  above 
5,000,000   gallons  monthly. 

The  company  also  carries  on  a  very  heavy  export  business 
in  gasolene,  lubricants  and  gas  oil.  Its  overseas  trade  is  so 
large  as  to  constitute  25  per  cent,  of  the  clearance  from  the 
port  of  Philadelphia. 

Refineries  of  the  company  are  located  at  Point  Breeze, 
near  Philadelphia;  at  Pittsburgh,  Penna.,  and  the  Eclipae 
Works  at  Franklin,  Pa.  These  refineries  have  an  estimated 
capacity  of  nearly  50,000  barrels  per  day,  distributed  as  fol- 
lows: Philadelphia,  37,500  barrels;  Franklin,  8,000  barrels, 
and  Pittsburgh,  3,000  barrels.  The  plant  at  Point  Breeze 
covers  about  750  acres,  including  river  frontage  of  2  mile« 
on  both  sides  of  the  Schuylkill  River,  and  has  storage 
capacity  for  about  3,000.000  barrels.  The  Eclipse  Works  at 
Franklin,  Pa.,  occupies  280  acres  on  the  Allegheny  River  and 
has  storage  facilities  for  1,500,000  barrels.  The  Eclipse  Plant 
supplies  the  Galena-Signal  Oil  Company  with  Its  entire  supply 
of  distillates  for  the  compounding  of  lubricating  and  Illum- 
inating oils,  under  a  ten-year  contract,  based  on  a  sliding 
scale.  The  Pittsburgh  plant  occupies  about  21  acres  located 
on  the  Allegheny  River,  and  has  storage  capacity  for  750,000 
barrels. 

Earnings — Net  profits  from  operations  in  1917  were  $12,- 
559,499  which  were  increased  by  $371,946  through  apprecia- 
tion of  Inventories,  making  total  net  profits  for  the  year 
$12,931,445,  which  establishes  a  new  high  record,  equivalent 
to  $258.62  a  share.  After  reserving  $3,925,136  for  War  Taxes 
or  $78.50  a  share,  net  profits  available  for  dividends  were 
$9,006,309  or  $180.12  a  share,  which  compares  with  $192.56 
In  1916. 


Atlantic  Refining  Company 


25 


The  company's  record  for  Earnings  is  set  forth  in  the 
following  table: — 

Earnings  Appreciation 

from  of  War  Carried  to 

Operations  Inventories  Taxes    Dividends  Surplus 
1917...    $12,559,499     $371,946  $3,925,136  $1,000,000  t$8,006,309 

1916...        9,371,258       256,998    1,000,000  8,628,256 

1915...        5,381,903       210,522    1,000,000  4,592,425 

1914...  940,740  *1,932,142    250,000  *991,4a2 

1913...        3,734,232         74,545    3,808,777 

1912...        4,953,953    2,343,719    7,297,673 


tSurplus  was  further  increased  in  1917  by  $2,560,889  as  a 

result  of  revaluation  of  plant. 
♦Loss  by  depreciation  of  prior  inventories,  causing-  a  de- 
duction from  Surplus  of  $991,402. 
Balance  Sheets — The  company's  expansion  in  six  years  of 
independent   operation    is   illustrated   by    its   financial  state- 
ments  for    1917   and   1916    compared   with    its   statement  of 
December  31,  1911,  just  prior  to  the  Dissolution. 

Comparative  Balance  Sheets  as  of  December  31st  follow: — 
Assets: 

Cash  

Reserve  Funds  (for  ships 
and  new  construction)  . 


Notes  &  Accts.  Receiv.  .  . 
Less  Resv.  for  Bad  Debts 


Mdse. 


Less — Accrued  Deprec  . 
Current  Deprec. 


1917 
$750,995 

1916 
$873,548 

1911 
$3,102,809 

431,625 

4,992,250 

$12,169,679 
103,615 

$6,890,496 
55,664 

$3,232,987 

$12,066,064 
18,925,150 

$6,834,832 
12,226,089 

8,305,028 

35,568,744 

23,377,872 

18,224,590 

$10,938,524 
729,747 

$10,212,981 
407,767 

$7,825,838 

Plant  after  Depreciation.  $23,900,473  $12,757,124  $10,398,752 

Other  Investments   979,080  652,552   

Employees'   Liberty  Bond 

Payments   102,433   

Advance  on  Acct.  of  Raw 

Materials,   etc   3,408,270  3,618,961   

Prepaid  Debits   207,835  27,26.3   


Total  Assets                     $60,771,927  $41,982,622  $25,039,576 

L«iabilitie». 

Notes  Payable     $4,216,871 

Accounts  Payable                    $4,861,304  $1,969,209  4,932,242 

Employees'   Liberty  Bond 

Payments    102,433   

Insurance  and  Other  Res.      2,219,717  1,037,221 

Accrued  Credit  Items....         119,946    ........ 

Capital  Stock                            5,000,000  5,000,000  5,000,666 

Tax  Liability    3,925,136   

Surplus                                    *44,543,390  33,976,192  10,890,463 


Total    Liabilities   $60,771,927    $41,982,622  $25,039,576 


♦Surplus  on  December  31,  1917:  Accumulated  from  Income 
$45,907,637.68,  to  which  is  added  $2,560,888.81,  as  a  re- 
sult of  the  revaluation  of  plant  total,  $48,468,526.49; 
less  tax  liability  of  $3,925,136,  leaving  surplus  of  $44,- 
543,390,  as  shown  in  the  Balance  Sheet. 


26 


Atlantic  Refining  Company 


Net  quick  assets  at  the  close  of  1917.  exclusive  of  the 
company's  tax  liability  cash  reserves  and  advances  to  subsid- 
iary companies,  were  $20,968,794,  which  compares  with  $17,- 
992,525  at  the  close  of  1916  and  a  cash  deficit  of  $2,813,317  at 
the  beginning  of  independent  operations  on  January  1,  1912. 
The  depreciated  value  of  the  company's  plant  investment  was 
practically  doubled  during-  the  past  year,  while  its  net  cash 
assets  showed  an  increase  of  approximately  50  per  cent. 

Commenting  on  the  company's  progress  during  the  past 
year,  the  president,  Mr.  J.  W.  Van  Dyke,  said  in  his  report  to 
the  stockholders: 

"These  figures  w^hich,  owing  to  unusual  conditions,  it  was 
impossible  to  prepare  for  your  information  prior  to  the  date 
of  the  last  annual  meeting,  set  forth  in  the  usual  detail  the 
condition  of  your  company.  A  comparison  of  the  important 
items  with  those  of  former  statements  also  reflects  the  chang- 
ing business  conditions.  Prom  such  comparison  you  will  note 
a  large  increase  in  investment,  both  for  merchandise  and  plant, 
and  a  decrease  in  the  fund  available  for  the  latter  purpose. 
This  change  is  the  natural  effect  of  a  larger  volume  of  busi- 
ness at  a  higher  price  level,  as  indicated  by  a  23  per  cent, 
increase  in  crude  oils  consumed  and  a  43  per  cent,  increase  in 
sales  values  as  compared  with  1916.  At  the  same  time  Fed- 
eral taxes  have  been  increased  from  about  $200,000  for  1916  to 
about  $4,000,000  for  1917.  The  result  has  been  that  the  profits 
from  operations  available  for  investment  in  the  business  have 
been  barely  sufl^cient  to  meet  the  demands  for  additional 
working  capital. 

"The  transition  of  the  country  during  the  year  from  a  con- 
dition of  peace  to  a  state  of  war  has  had  a  marked  and  in- 
creasing effect  upon  the  business  of  your  company.  While  in 
January,  1917,  only  about  28  per  cent,  of  your  output  was  used* 
by  the  United  States  Government  and  the  countries  with 
which  she  is  now  allied,  at  the  end  of  the  year  this  propor- 
tion had  risen  to  over  51  per  cent.,  and  an  additional  16  per 
cent,  was  being  consumed  by  railroads,  shipyards,  munition 
plants  and  other  vital  industries.  The  effort  of  your  repre- 
sentcttives  has  been  to  serve  the  Government  in  every  way 
possible,  and  the  same  motive  will  actuate  their  handling  of 
your  business  during  the  ensuing  year." 

Tabular  analysis  of  the  company's  growth  in  the  six  years 
since  the  dissolution  is  as  follows: 

New  Plant  Current       Surplus  and  Book 


Investment  Depreciation      Reserves  Value 

1917   $12,190,872  $729,747  *$46,763,107  t$l,035.26 

1916   2,553,070  407,767  35,013,413  800.07 

1915   724,626  677,129  26,196,860  623.93 

1914   692,066  451,830  21,297,181  525.94 

1913   545,850  606,686  22,380,988  547.62 

1912   637,699  651,497  18,404,623  468.09 


♦Surplus  was  increased  $2,560,889  through  revaluation  of 
plant.  tBook  values  include  insurance  and  other  reserves. 

This  indicates  that  out  of  cash  profits  of  approximately 
$37,000,000  for  the  six  years,  $17,344,183  has  been  ploughed 
back  into  the  property  and  $3,524,656  written  off  for  deprecia- 
tion. The  result  of  this  conservative  policy  has  been  a  growth 
of  more  than  100  per  cent,  in  operating  profits  in  the  past  two 
years.  As  70  per  cent,  of  the  company's  plant  investment  for 
the  period  has  become  available  in  the  past  year  through  the 
construction  of  its  fleet,  future  earnings  may  be  expected  to 
be  on  a  still  larger  scale.  The  company's  fleet  was  increased 
by  the  launching  of  two  new  tankships  during  1917  and  two 


Atlantic  Refining  Company 


additional  ships  are  nearly  completed  and  will  be  placed  in 
service  during-  1918.  At  the  close  of  1917,  orders  were  placed 
for  two  additional  tankships  which  will  be  ready  late  in  1918 
or  early  1919.  The  completion  of  these  new  vessels  will  give 
the  company  a  fleet  of  eight  tankships  with  a  gross  tonnage 
of  45,000  tons. 

In  anticipation  of  the  expansion  of  the  fuel  oil  business, 
the  company  in  addition  to  increasing  its  own  production  and 
shipping  facilities  in  Mexico,  has  placed  a  contract  for  3,- 
000,000  barrels  of  Mexican  crude  on  which  deliveries  will  be- 
gin during  the  summer  of  1918. 

Shareholders  of  the  company  who  have  watched  the  book 
value  of  their  stock  increase  to  more  than  $1000  a  share  with- 
out any  intimation  from  the  company  of  the  imminence  of  a 
stock  dividend,  have  noted  that  the  company's  volume  of 
business  has  expanded  to  a  point  where  more  cash  is  desir- 
able. Some  see  in  this  a  hopeful  sign,  that  new  stock  may  be 
offered  for  subscription  as  the  resultant  "rights"  would  be 
very  valuable  indeed.  Those  who  are  impatient  over  the  long 
delayed  stock  dividend,  point  out  that  as  the  company  had  a 
surplus  of  undivided  profits  of  more  than  $18,000,000  on  De- 
cember 31,  1912,  it  could  distribute  a  stock  dividend  of  300  per 
cent.,  which  would  be  free  of  all  income  tax  under  the  recent 
ruling  of  the  United  States  Supreme  Court,  in  the  Yale  & 
Towne  Income  Tax  litigation. 

To  handle  its  expansion  in  production  and  shipping  the 
company  has  formed  two  subsidiaries,  which  may  be  described 
as  follows: 

ATLANTIC  OIL.  SHIPPING  COMPANY 

Incorporated  in  Delaware  in  June,  1916.  Capitalization, 
$500,000;  par  value,  $100.  All  but  qualifying  shares  are 
owned  by  Atlantic  Refining  Company. 

Properties — The  company  owns  and  operates  a  growing 
fleet  of  tankships  of  the  most  modern  pattern.     During  1916, 

two  vessels  were  launched  and  placed  in  operation  and  two 
additional  vessels  were  added  to  the  fleet  during  1917.  The 
company's  fleet  consists  of  the  following: 

In  Operation 

Vessel  Gross  Tonnagre 

H.  C.  Folger   7,100 

J.  W.  Van  Dyke   7,100 

J.  C.  Donnell   8,400 

J.  E.  O'Neill   7,200 

29,800 

Scheduled  for  1918  Completion 

No.  144   7,200 

No.  148    7,200 

Sheduled  for  1919  Completion 

Unnamed    7,450 

Unnamed    7,450 

»  29  300 

Grand  total    59400 


In  addition  the  company  operates  a  number  of  barges, 
launches  and  tug  boats  for  interior  water  traffic. 


28 


Borne  Scrymser  Company 


ATLANTIC  OIL  PRODUCTION  COMPANY 

Incorporated  in  Delaware  in  June,  1916.  Capitalization, 
$100,000;  par  value,  $100.  All  but  qualifying  shares  are 
owned  by  tlie  Atlantic  Refining-  Company. 

Properties — The  company  has  purchased  a  controlling  in- 
terest in  the  Panuco-Boston  Oil  Company  and  has  advanced 
that  company  $100,000  to  develop  its  properties. 

The  Panuco-Boston  Oil  Company  operates  a  lease  of  522 
acres  on  the  Panuco  River,  on  which  there  are  two  producing 
wells.  Well  No.  1  is  producing  2,200  barrels  daily  and  its 
output  is  sold  under  a  long  time  contract  to  the  Interocean 
Oil  Company.  Well  No.  2,  brought  in  since  Atlantic  Refining 
Company  acquired  its  interest  is  good  for  5,000  barrels  daily. 
The  equipment  on  the  property  consists  of  two  55,000-barrel 
tanks,  one  flow  tank  of  1,000  barrels,  earthen  storage,  50,000 
barrels;  and  three-quarters  mile  of  pipe  line,  pumping 
station,  shipping  wharf,  drilling  rigs,  etc.  The  capitalization 
of  the  Panuco-Boston  Company  is  $1,000,000;  par  value,  $100; 
and  $155,000  of  first  mortgage  bonds  outstanding. 

lu  August,  1917,  the  company  purchased  for  $1,000,000  a 
52  per  cent,  interest  in  the  Gulf  Coast  Oil  Corporation,  which 
owns  an  extensive  acreage  of  proven  oil  lands  in  the  Gulf 
Coast  fields  of  Texas.  The  company  also  acquired  by  pur- 
chase $500,000  of  the  Gulf  Coast  Oil  Corporation's  bonds. 
A  1,500  barrel  well  was  developed  on  these  properties  in 
September,  1917. 

The  Atlantic  Oil  Production  Company  in  conjunction  Avith 
the  Southern  Oil  and  Transport  Company  completed  in  Sep- 
tember, 1917,  at  a  cost  of  $500,000,  an  extensive  storage  and 
shipping  station  close  to  Tampico  on  ^he  Panuco  River. 

The  company  has  acquired  extensive  acreage  in  Kentucky 
and  in  the  Gulf  Coast  fields  and  is  engaged  actively  in  de- 
veloping  its  properties. 

Ofllcials  of  the  Atlantic  Refining  Company  are  as  follows: 

Officers — President — J.  W.  Van  Dyke. 

Vice-Presidents — W.  P.  Cutler  and  W.  M.  Irish. 
Secretary — W.  D.  Anderson. 
Treasurer — Henry  S.  Mustln. 

Directors — J.  W.  Van  Dyke,  W.  P.  Cutler,  W.  M.  Irish, 
H.  S,  Mustin.  J.  W.  Liberton,  E.  G.  Glines.  R.  D. 
Leonard. 

Transfer  Office — 3141  Passayunk  Avenue,  Philadelphia,  Pa 
Annual  Meeting: — First  Tuesday  in  March. 


BORNE  SCRYMSER  COMPANY 

The  Borne  Scrymser  Company  was  incorporated  in  189S 
under  the  laws  of  New  Jersey. 

Capital  Stock — The  capital  stock  is  $200,000.  Par  value, 
$100. 

Dividends — Since  the  dissolution,  dividends  have  been  paid 
as  followjf 

1917 — Oct  15     20%       $40,000        1914— Oct  15    20%  $40,000 
1916 — Oct  15    20%         40,000        1913 — Oct  15     20%  40,000 
1915— Oct  15      20%        40,000        1912 — Dec  20     20%  40,000 
Total  Dividends  since  the  dissolution..  $240,000 

Properties — The  business  of  the  company  comprises  prin- 
cipally the  compounding  and  marketing  of  lubricating  oils. 
A  larger  plant  has  been  constructed  during  1916  at  Elizabeth- 


Buckeye  Pipe  Line  Company 


29 


port,  N.  J.  The  change  from  the  former  location  at  Clairmont, 
Jersey  City,  was  made  necessary  by  the  increasing  domestic 
and  export  business.  The  company  transacts  a  large  business 
in  England,  and  has  branch  offices  in  the  large  cities  of  the 
United  Kingdom. 

The  company  was  among  the  first  to  compound  an  oil  for 
aeroplane  engine  lubrication  that  would  pass  the  rigid  test 
of  the  United  States  Government. 

The  book  value  of  this  company's  stock  was  carried  by  the 
Standard  Oil  of  New  Jersey  on  December  31,  1906,  at  $284,771. 

During  the  eight  year  period  1899-1906,  the  average  net 
profits  were  $52,566,  equal  to  26.3  per  cent,  on  the  $200,000 
capital  stock  outstanding.  Since  the  dissolution  the  com- 
pany's profits  have  averaged  in  excess  of  30  per  cent.  The 
company  never  has  issued  a  financial  statement. 

Officers — President — O.  G.  Waring. 

Vice  President  and  Treasurer — A.  C.  Weed. 
Secretary — Philip  C.  Meon. 

Directors — The  above-named  officers  and  in  addition: 
G.  H.  Kline  and  Benjamin  L.  Armstrong. 

Transfer  Office — SO  South  Street,  New  York  City. 

Annual  Meeting — Last  Monday  in  February  at  Elizabeth- 
port,  New  Jersey. 


THE  BUCKEYE  PIPE  LINE  COMPANY 

The  Buckeye  Pipe  Line  Company  was  incorporated  Marck 
81,  1886,  under  the  laws  of  Ohio. 

Capital  Stock — The  capital  stock  was  originally  $100,000, 
but  this  was  increased  to  $10,000,000  in  1890  and  1892.  Par 
value.  $50. 

Dividends — Since  the  dissolution,  dividends  have  been  de- 
clared as  follows: 


1918- 

— Jun  15 

4% 

,^400,000 

1914- 

— Dec  IS 

4% 

$400,000 

Maris 

6% 

600,000 

Sep  15 

4% 

400,000 

1917- 

-Dec  15 

7% 

700,000 

Jun  15 

10% 

1,000,000 

Sep  15 

4% 

400,000 

Maris 

10% 

1,000,000 

Jun  15 

4% 

400,000 

1913- 

—Dec  15 

10% 

1,000,000 

Maris 

4% 

400,000 

Sep  15 

10% 

1,000,000 

1916- 

—Dec  15 

4% 

400,000 

Jun  15 

10% 

1,000,000 

Sep  15 

4% 

400,000 

Maris 

10% 

1,000,000 

Jun  15 

4% 

400,000 

1912- 

—Dec  IS 

10% 

1,000,000 

Maris 

4% 

400,000 

Sep  15 

10% 

1,000,000 

1915- 

—Dec  15 

4% 

400,000 

Jun  IS 

10% 

1,000,000 

Sep  15 

4% 

400,000 

Maris 

10% 

1,000,000 

Jun  15 

4%  • 

400,000 

Maris 

4% 

400,000 

Total  Dividends  since  dissolution    $16,900,000 


Properties — The  Buckeye  Pipe  Lines  form  a  part  of  an 
extensive  system,  covering  the  entire  State  of  Ohio.  It  com- 
prises two  systems,  the  Lima  division  operating  in  the  North 
and  the  Macksburg  division  serving  the  Southeastern  Ohio 
fields.  The  main  trunk  line  in  the  Lima  division  is  295.1 
miles  In  length,  consisting  of  double  and  triple  loopings  of 
5,  6  and  8  inch  pipes.  There  are  a  thousand  miles  of  pipe 
In  this  trunk  line  division  and  more  than  a  thousand  mflM 
of  gathering  lines.  Oil  from  the  Mid-Continent  field  is  de- 
livered by  the  Indiana  Pipe  Line  to  the  Buckeye  system, 
which  delivers  it  to  the  Imperial  Oil  Company's  Canadian 


30 


Buckeye  Pipe  Line  Company 


pipe  line  at  Toledo,  to  the  Standard  Oil  of  Ohio's  Cleveland 
refinery  or  to  the  Northern  Pipe  Line  at  the  Ohio-Pennsyl- 
vania border. 

There  are  two  8-inch  lines  running  from  Whiting,  Indiana, 
eastward,  to  Lima,  Ohio,  which  are  joined  just  west  ot  th« 
Ohio-Indiana  State  line  by  a  6-inch  iine  extending  eastward 
from  Montpelier,  Indiana.  At  Lima  those  lines  deliver  to  tb« 
Solar  Refining  Company,  a  Standard  Oil  concern.  Thence  they 
extend  northwest  to  Findlay  and  Cygnet.  Ohio.  At  Cygnet, 
which  is  nearly  due  south  of  Toledo,  various  collecting  lines 
from  fields  toward  the  north  join  the  main  stem.  Thes« 
latter  lines  are  also  connected  with  Toledo,  where  they  supply 
crude  oil  to  the  Craig  Refinery.  The  main  pipe  lines  continue 
eastward  in  almost  a  direct  line  from  Cygnet  to  Bear  Creek, 
Penna.  A  branch  of  this  line  starting  at  Mantua,  Ohio, 
delivers  crude  oil  to  the  Cleveland  refineries. 

The  company's  earnings  and  dividends  since  the  dissolu- 
tion are  as  follows: 

Net  Profits      Rate     Dividends      Surplus  Value 

1917   $2,380,083      23.8%     $1,900,000    $9,910,993  $99.55 

1916   2,082,068      20.8%      1,600,000      9,430.910  97.15 

1915   1,523,801      15.2%      1,600,000      8,948,842  94.72 

1914   2,417,157      24.0%      2,800,000      9,025,041  95.25 

1913   3,632,581      36.0%      4,000,000      9,407,884  97.03 

1912   6.000,422      60.0%      4,000,000      9,775,303  108.00 

The  progressive  decline  in  earnings  between  1912  and 
1915  was  due  not  only  to  a  falling  off  in  the  company's 
gathering  line  business  through  the  exhaustion  of  the  Ohio 
oil  fields,  but  also  to  the  radical  readjustment  in  rates  after 
June  1913,  when  the  United  States  Supreme  Court  declared 
the  pipe  lines  common  carriers.  Immediately  thereafter  it 
became  necessary  to  make  a  competitive  through  rate  on 
oil  from  Oklahoma  to  New  York  and  Philadelphia,  against 
the  water  rate  between  Gulf  Coast  ports  and  those  points. 
The  previous  rate  of  $1.25  a  barrel  between  Mid-Continent 
points  and  the  Atlantic  seaboard  was  cut  to  70  cents,  a 
40  per  cent,  reduction.  It  will  be  noticed  that  because  of 
improved  conditions  In  the  industry  and  the  Increasing  de- 
mand for  Mid-Continent  oil  by  seaboard  refineries,  the  com- 
pany's traflic  and  profits  increased  materially  in  1916  and 
1917.  As  the  new  Government  war  taxes  impose  a  penality  of 
10  per  cent,  on  current  profits  not  distributed  as  dividends  or 
converted  in  working  capital,  it  is  likely  that  the  shareholders 
will  be  rewarded  up  to  the  company's  full  earning  power,  as 
its  cash  resources  are  unusually  large. 

The  company's  financial  statement  for  1917  follows: 

1917  1916  Chanere 

♦Net    Profits   $2,380,083      $2,082,068  4-$298,015 

Dividends   1,900,000       1,600,000    -f  300,000 

Carried  to  P.  &  L.  Acct...       $480,083        $482,068    —  1.985 

♦Equal   to    23.8   per   cent,    earned    in    1917    on  $10,000,000 
capital  stock  compared  with  20.8  per  cent,  in  1916  and 
15.2  per  cent,  in  1915. 
The    Balance    Sheet    as    of    December    31st,    compares  as 
follows: — 

Assets:  1917  1916  Change 

Pipe  Line  Plant   $15,597,753    $15,479,980    -f $117, 773 

Materials  and  Supplies   71,065  43,707    -f  27,358 

Cash,     other  Investments 

and  Accounts  Receivable      9,366,501       8,672,578    +  693,923 

Total   .  $25,035,320    $24,196,265    -f  839,055 


Buckeye  Pipe  Line  Company 


31 


Liabilities  1917  1916  Change 

Capital  Stock   $10,000,000  $10,000,000   

Accounts    Payable   244,731  330,647  —  $85,926 

Reserve   Account    for  Ac- 
crued  Depreciation   4,831,948  4,414,135  +  417,813 

Fire  Insurance  Reserve...  47,656  20,573  -j-  27,083 

Profit  and  Loss   9,910,993  9,4»i,,910  +  480,083 


Total   $25,035,320    $24,196,265    +  839,055 

The  company's  traffic  has  shown  a  healthy  increase  due 
principally  to  the  fact  that  it  serves  as  a  connecting-  link 
between  the  Mid-Continent  fields  and  the  great  refinery  of  the 
Imperial  Oil  Company,  Ltd.,  at.Sarnia,  Canada.  It  has  been 
aided  also  by  the  increased  demands  for  crude  oil  at  the  ex- 
panded plants  of  the  Standard  Oil  Company  of  Ohio  and  the 
Solar  Refining-  Company.  After  writing  off  $417,813  for  de- 
preciation the  company  was  able  to  increase  its  dividend  dis- 
bursement by  $300,000  and  add  $480,000  to  surplus.  The 
Book  Value  of  the  stock  ($50  par)  increased  to  $99.55  a 
share,  of  which  $45.61  represents  net  cash  assets. 

Traffic  over  the  company's  lines  for  the  last  five  years 
compares  as  follows: 

LIMA  DIVISION 


Runs 

Other 

from  Wells 

Receipts 

Deliveries 

Total 

4 

Months, 

1918. 

515,829 

8,750,694 

9,547,961 

Total 

4 

Months, 

1917.  . 

658,741 

7,674,892 

8,446.138 

Total 

12 

Months, 

1917.  . 

1,930,907 

26,252,701 

25,970,776 

Tqtal 

12 

Months, 

1916.  . 

2,074,880 

22,920,155 

24,490,516 

Total 

12 

Months, 

1915. 

2,281,809 

18,230,139 

20,169,428 

Total 

12 

Months, 

1914.  . 

2,567,268 

16,302,421 

20,402,119 

Total 

12 

Months. 

1913. 

2,674,390 

22,874,505 

26,614,010 

MACKSBUKG  DIVISION 

Kiins 

Other 

from  Wells 

Receipts 

Deliveries 

Total 

4 

Months, 

1918. 

1,101,251 

11,272 

953,735 

Total 

4 

Months, 

1917. 

1,119,309 

14,204 

1,145,489 

Total 

.12 

Months, 

1917. 

3,523,238 

42,736 

3,779,618 

Total 

1 

Months, 

1916. 

3,346,637 

50,657 

3.429,011 

Total 

12 

Months, 

1915. 

3,265,334 

57,781 

3,350,829 

Total 

12 

Months, 

1914  . 

3,434,261 

69,075 

3,383.608 

Total 

12 

Months, 

1913. 

3,559,962 

88,143 

3,716,913 

Directors — D.  S.  Bushnell,  New  Fork;  o.  S.  June,  Lima.  O 
R.  L.  Bates,  Lima,  O. ;  Geo.  E.  Pifer,  Cleveland,  O. ;    T.  W. 
Dillon,   Toledo,  O. 

Officers — President — D.  S.  Bushnell. 

Vice-President — O.  S.  June. 

Secretary — George  Chesebro. 

Assistant  Secretary — J.  R.  Fast. 

Treasurer — W.  A.  Harris. 
Transfer  Office — 26  Broadway,  New  York  City. 
Annual  Meeting — Fourth  Wednesday  in  May. 


32  Chesebrough  Manufacturingr  Company 


CHESEBROUGH  MANUFACTURING  CO. 

(Consolidated) 

The  Chesebrough  Manufacturing  Company  was  incorporated 
iTi  1S80  under  the  laws  of  New  York. 

Capital  Stock — The  capital  stock  of  the  company  is  $1,- 
500,000.  Par  value,  $100,  having  been  increased  from  $500,000 
by  a  vote  of  the  shareholder  on  May  4,  1916,  through  a  200 
per  cent  stock  dividend  which  was  distributed  on  June  10, 
1916. 


Dividends 

— Since 

1900  dividends 

have 

been   declared  ai 

'o  I  lows : 

1900, , 

.  .  .  .  26 

per  cent. 

1908 

40  per  cent. 

1901 

  30 

per  cent. 

1909 

60  per  cent. 

1902, 

  24 

per  cent. 

1910 

40  per  cent. 

1903. . 

18 

per  cent. . 

1911 

30  per  cent. 

1904 

18 

per  cent. 

1912 

50  per  cent. 

1905  , 

18 

per  cent. 

1913 

40  per  cent. 

1906, 

...211/2 

per  cent. 

1914 

40  per  cent. 

1907 

  40 

per  cent. 

1915 

40  per  cent. 

1916 — Maris 

10% 

.$50,000 

1917- 

—Mar  19  31/2  %  $52,500 

Jun  10 

200% 

Stk.  Div. 

Jun  19  31/2  %  52,500 

Jiin  29 

31/2% 

52,500 

Sep  20  31/2%  52,500 

Sep  20 

3V2% 

52,500 

Dec  20    31/2%  52,500 

Dec  20 

3  V2  % 

52,500 

1918- 

—Mar  21  31/2%  52,500 

Jun 

3y2%  52,500 

Total 

dividends  since 

  $1,372,500 

Properties — The  company's  principal  business  is  the  manu- 
facture of  vaselene  and  chemical  bases  from  crude  petroleum 
for  various  pharmacal  products.  The  plant  of  the  company 
is  located  at  Perth  Amboy,  N.  J.,  and  it  also  operates  dis- 
tributing stations  in  the  large  cities  throughout  the  world. 
Owing  to  the  enormously  increased  demand  for  the  company's 
pharmaceutical  products  in  the  military  hospitals  of  Europe, 
the  company  was  obliged  to  expend  $65,000  in  expanding'  its 
plant  during  1915  and  expended  $185,000  additional  during 
1916.  It  rents  a  large  office  building  at  No.  17  State  Street, 
New  York. 

During  1915  the  company  placed  on  the  market  an  odor- 
less and  tasteless  preparation  of  crude  oil  for  medicinal  pur- 
poses xindc-r  the  trade  r<^me  of  "White  T.iquid  Vaseline."  The 
preparation  is  enjoying  a  large  sale,  as  physicians  have  found 

it  an  excellent  remedy  for  intestinal  stasis. 

During  the  eight-year  period  1899-1906,  the  average  net 
orofits  were  $157,447,  or  equal  to  31.5  per  cent.  or.  tb» 
$500,000  capital  stock  outstanding.  At  the  close  of  1906  the 
company's  net  assets  were  $1,090,575,  indicating  a  surplus  of 
$590,575.  In  the  succeeding  eight  years,  the  company's  earn- 
ings increased  materially,  as  its  dividends  averaged  40  per 
cent,  and  surplus  doubled.  The  dividend  on  the  increased 
capital  is  equivalent  to  42  per  cent,  on  the  original  capitaliza- 
tion. 

Officers — President — O.   M.  Cammann. 

Vice-President — C.   W.  McGee. 
Secretary— R.  S.  Gill. 
Treasurer — C.  Lament. 

Ass't  Secretary  and  Treasurer — F.  H.  Williams. 

Trustees— O.  M.  Cammann,  C.  W.  McGee.  R.  S.  Gill.  C. 
Lament,  R.  A.  Chesel  rough,  S.  A.  Drew,  W.  C.  Cammann, 
Lewis  C.  Waring,  Rusf  el  E.  Burke. 

Transfer  Office — 17  State  Street.   New  York  City. 

Annual  Meeting — First  Thursday  in  May. 


Colonial  Oil  Company 


3'3 


COLONIAL  OIL  COMPANY 

The  Colonial  Oil  Company  was  incorporated  In  1901,  und*J 
the  laws  of  New  Jersey. 

Capital  Stock — The  capital  atock  is  $250,000.  Par  vaino 
1100. 

Dividends — The  company  Ixas  paid  two  dividends  in  liqui- 
dation, 100  per  cent,  on  May  1,  1916,  and  50  per  cent,  on  No- 
vember 20,  1917. 

Properties — This  company  was  engaged  principally  in 
marketing  Standard  Oil  products  in  South  Africa  and  Aus- 
tralia. 

The  directors  of  the  old  Standard  Oil  Company  of  New 
Jersey  had  decided  to  dissolve  the  Colonial  Oil  Company, 
and  preparatory  to  this  end  had  transferred  most  of  the 
foreign  marketing  agencies  of  the  Colonial  in  South  Africa, 
Australia  and  China  to  the  Standard  Oil  of  New  York  and 
the  Vacuum  Oil  Company.  The  process  of  liquidating  the 
company  was  halted  by  the  announcement  of  the  Govern- 
ment's decree  of  dissolution.  This  left  Colonial  Oil  with 
only  one  marketing  station,  located  in  Buenos  Ayres.  The 
Standard  Oil  Company  of  New  Jersey  also  has  operated  a 
marketing  station  in  Buenos  Ayres  in  competition  with  the 
Cononial  Oil  Company. 

Stockholders  of  the  company  at  a  special  meeting  No- 
vember 24,  1915,  voted  approval  of  a  resolution  of  the  direc- 
tors,  to  dissolve  the  company 

The  Trustees  in  Liquidation  in  announcing  the  initial  pay- 
ment of  $100  a  share  on  May  1,  1916,  furnished  a  financial 
statement  of  the  company  as  of  March  1,  1916.  Thereafter,  in 
November,  1917,  in  conjunction  with  the  declaration  of  a  sec- 
ond payment  of  $50  a  share  on  November  20,  1917,  a  supple- 
mental financial  statement  was  given  out.  These  statements 
compare  as  follows: 

March  1, 1916  Oct.  31,  1917 


Cash  and  Demand  Loans   $331,794  $163,947 

Notes  and  Accounts  Receivable   249,649  90,842 

Real  Estate  (Buenos  Aires)   20,244   

Plant,  Furniture,  Etc   9,685  667 


$611,372  $255,456 

Less  Indebtedness    129,047   

Dividend  "A"  Uncollected     6,804 


Net  Assets    $482,325  $248,652 

Dividend    250,000  125,000 

(100%)  (50%) 


Carried  Forward    $232,325  $123,652 


The  unliquidated  assets  represent  a  book  value  of  $49.46  a 
share.  The  progress  of  the  liquidation  as  revealed  in  the 
xibove  statements,  shows  the  careful  manner  in  which  the 
company's  assets  are  being  conserved  for  the  benefit  of  the 
stockholders.  In  connection  with  the  recent  statement,  the 
trustees  said: 

"During  the  past  year  the  trustees  have  disposed  of  the 
real  estate,  plant  equipment  and  oflice  furniture  at  Buenos 
Ayres,  Argentine,  and  collected  a  substantial  part  of  the  out- 
standing notes  and  accounts  receivable. 

"While  the  trustees  have  succeeded  in  realizing  $158,807 
from  notes  and  accounts  receivable  at  Buenos  Ayres,  there  is 
still  outstanding  $90,842,  a  large  part  of  which  is  represented 


34 


Continental  Oil  Company 


by  long-  time  paper  or  is  owing-  from  former  customers 
whose  financial  affairs  have  been  such  that  the  trustees  have 
not  deemed  it  advisable  to  endeavor  to  enforce  collection  by 
litigation.  The  company's  representative  at  Buenos  Ayres, 
feels  that  a  substantial  part  of  these  outstanding  accounts  is 
collectable," 

The  stock  transfer  books  of  the  company  have  been  closed 
permanently  but  registered  stockholders  may  authorize  the 
payment  of  distributions  to  other  persons  by  filing  formal 
assignments  with  the  company. 

Officers — President — E.  T.  Bedford. 

Vice-President — W.  J.  Fisher. 
Secretary  and  Treasurer — F.  A.  Morrell. 
Transfer  Office — No.  17  Battery  Place,  New  York  City. 


CONTINENTAL  OIL  COMPANY 

The  Continental  Oil  Company  was  incorporated  in  March, 
i'MZ,  under  the  laws  of  Colorado. 

Capital  Stock — The  Capital  Stock  is  ?3.ono.ono  Par  valup 
$100.  On  September  17,  1917,  the  stockholders  approved  an 
increase  of  the  authorized  capitalization  to  $12,000,000,  but 
the  directors  have  taken  no  steps  to  issue  the  new  stock. 

The  original  Continental  Oil  Company  was  incorporated  in 
Iowa  in  1884,  with  a  capital  of  $300,000.  On  May  8,  1913.  the 
stockholders  ratified  the  proposition  to  turn  the  business  and 
assets  of  the  company  over  to  the  new  Colorado  corporation- 

The  stock  of  the  Continental  Oil  Company  of  Colorado  was 
thereupon  distributed  to  the  stockholders  of  the  Continental 
Oil  Company  of  Iowa,  in  the  ratio  of  ten  shares  of  the  new 
corporation  in  exchange  for  each  share  of  the  old  corporation; 
and  as  to  fractional  shares,  each  holder  received  a  fractional 
share  ten  times  as  great  as  his  holding  in  the  Iowa  company. 
This  is  equal  to  a  900  per  cent,  stock  dividend. 

Dividends — Since  the  dissolution  dividends  have  been  paid 
as  follows: 


1918- 

— Jun  17 

3% 

Ji;90,ooo 

Marie 

S% 

90,000 

1917- 

—Dec  17 

3% 

90,000 

Sep  17 

3% 

90,000 

Jun  16 

3% 

90,000 

Marl6 

3% 

90,000 

1916- 

—Dec 

3% 

90,000 

\ 

Sep 

3% 

90,000 

Jun 

3% 

90,000 

Mar 

3% 

90,000 

1915- 

—Dec 

3% 

90,000 

Sep 

3% 

90,000 

Total    Dividends  since 


1915— Jun 

3% 

$90,000 

Mar 

3% 

90,000 

1914 — Dec 

3% 

90,000 

Sep 

3% 

90,000 

Jun 

8% 

90,000 

Mar 

3% 

90,000 

1913 — Dec  16 

37c 

90,000 

Sep  16 

90.000 

Jun  30 

9007^ 

Stk.  Dir. 

1912 — Nov  20 

2  0  9r 

60,000 

Feb  28 

50  7r 

150,000 

$2,010,000 

Properties — This  was  originally  a  marketing  company, 
operating  in  the  Rocky  Mountain  States  of  Montana,  New 
Mexico,  Utah,  Idaho,  Wyoming  and  Colorado,  as  well  as  in 
the  Canadian  Provinces  of  Manitoba  and  Saskatchewan. 

The  company  purchased  its  supplies  from  Standard  Oil  Com- 
pany of  Kansas  and  Standard  Oil  Company  of  California  as 
well  as  from  the  United  Oil  Company's  refinery  at  Florence, 
Colo.  With  the  development  of  the  Wyoming  fields  and  the 
erection  of  large  refining  plants  at  Casper,  Wyo.,  by  the  Mid- 
west Refining  Company  and  Standard  Oil  Company  of  Indiana, 


Crescent  Pipe  Line  Company 


35 


the  company  beg-an  to  take  most  of  its  supplies  from  Casper 
and  erected  there  a  large  shipping  station. 

In  1916,  to  take  advantage  of  the  surplus  of  high  grade 
crude  oil  in  Wyoming,  the  company  acquired  control  of  the 
United  Oil  Company's  refinery  at  Florence,  Colo.,  and  at  an 
expenditure  of  $750,000  is  converting  it  into  one  of  the  best 
equipped  refining  plants  west  of  the  Mississippi  River.  The 
refinery  will  be  complete  in  every  detail,  including  a  wax 
plant  and  Burton  pressure  stills  for  producing  motor  spirit 
from  distillate. 

It  is  understood  also  that  the  company  is  interested  in  pro- 
duction in  Wyoming  and  Colorado  and  has  become  therefore  a 
complete  unit,  exercising  the  four  major  operations  of  the 
petroleum  industry. 

With  the  rapid  increase  in  the  use  of  automobile  and  farm 
tractors,  the  demand  for  petroleum  products  in  the  Rocky 
Mountain  States  has  more  than  doubled  in  the  last  three  years, 
and  with  ample  cash  resources  the  company  has  expanded  its 
facilities  to  meet  its  growing  business. 

Earnings — No  financial  statement  has  been  issued  since  the 
dissolution,  but  the  Federal  Trade  Commission  reports  that 
in  1915,  the  company  earned  $1,543,037,  or  at  the  rate  of  51.4 
per  cent.,  and  that  the  company's  capital  and  surplus  on 
December  31,  1915,  was  $5,716,704.  As  1916  and  1917  were  the 
best  years  in  the  company's  history,  it  is  not  unlikely  that 
the  company's  surplus  at  the  close  of  1917  was  in  excess  of 
$5,000,000. 

Officers — President — E.  T.  Wilson. 

Vice-President — H.  T.  Cleaver. 
Secretary  and  Treasurer — C.  E.  Strong. 
General  Manager — J.  B.  F.  Reynolds. 

Transfer  Office — McPhee  Building,  Denver,  Colorado. 

Annual  Meeting: — Third  Thursday  in  January. 


THE  CRESCENT  PIPE  LINE  COMPANY 

The  Crescent  Pipe  Line  Company  was  incorporated  in  1891 
under  the  laws  of  Pennsylvania, 

Capital  Stock — The  capital  stock  was  originally  $100,000, 
but  this  was  increased  to  $3,000,000  in  1906.    Par  value,  $50. 

Dividends — Since  the  dissolution,  the  dividend  rate  has 
been  as  follows: 


1918- 

— Jun  15 

11/2% 

$45,000 

1914 — Dec  15 

11/2% 

$45,000 

Mar  15 

11/2% 

45,000 

Sep  15 

11/2% 

45,000 

1917- 

—Dec  15 

1  1/2  % 

45,000 

Jun  15 

3% 

90,000 

Sep  15 

1  1/2  % 

45,000 
45.000 

Mar  15 

3% 

90,000 

Jun  15 

11/2% 

1913 — Dec  15 

3% 

90,000 

Mar  15 

1  1/2  % 

45,000 

Sep  15 

3% 

90,000 

1916- 

—Dec  15 

11/2% 

45,000 

Jun  16 

3% 

90,000 

Sep  15 

11/2% 

45,000 

Marl7 

3% 

90,000 

Jun  15 

11/2% 

45,000 

1912 — Dec  16 

3% 

90,000 

Mar  15 

11/2% 

45,000 

Sep  16 

3% 

90,000 

1915- 

—Dec  15 

11/2% 

45,000 

Jun  15 

3% 

90,000 

Sep  15 

11/2% 

45,000 

Mar  15 

3% 

90,000 

Jun  15 

11/2% 

45,000 

Marl5 

11/2% 

45,000 

Total  : 

Dividends  since 

$1,620,000 

Properties — The  Crescent  Pipe  Line  forms  the  main  trunk 
of  wbat  is  known  as  the  Middle  Division  of  the  Appalachian 
Pipe  Line  System.  The  line  is  about  315  miles  long,  and  Is 
constructed  of  5-inch  and  6-inch  pipe.  It  extends  from  Gregga 


36 


Crescent  Pipe  T^ine  Company 


Net  Profits 
1917   .$167,1-^9 


in  Western  Pennsylvania,  where  it  connects  with  the  South- 
west Pennsylvania  Pipe  Lines  (from  which  lines  it  receive* 
the  traffic)  in  almost  a  direct  line  »outheastcrly  to  Marcus 
Hook,  south  of  Philadelphia,  which  Is  an  important  exporting 
ooint  ^r  crude  oil.  The  pumpingr  stations  average  43  miles 
apart. 

Earnings — Crescent  Pipe  Line  Company's  financial  state- 
ment for  1917  permits  of  the  following-  review  of  the  six-year 
period : 

Rate 

5.57% 
6.43% 
6.24% 
8.98% 
12.30% 
14.20% 

The  company's  decline  in  earnings  has 
much  to  falling  off  in  ^raiffic  as  to  reduced  rates.  The  com- 
pany has  no  carrying  lines,  but  depends  entirely  on  trunk 
line  business  furnished  by  the  South  West  Pennsylvania 
Pipe  Lines'  gathering  system. 

Crescent  Pipe  Line  Company's  report  for  1917  compares 
with  the  previous  year  as  follows: — 

1917  1916  Decrease 

Net    Profits   $167,129       $193,072  $25,943 

Dividends  Paid   180,000  180,000   


]  91 

1914. 
1913. 
1912. 


193,072 
187,269 
269,658 
370,849 
42«,111 


Dividends 
$180,000 
180,000 
180,000 
270,000 
360,000 
360,000 


Surplus 

$349,813 
362,684 
349,613 
342,245 
342,686 
331,792 

been  due 


Bk.Val. 

$55.83 
56.04 
55.82 
55.70 
55.71 
55.53 
not  so 


Surplus   *$12,871  $13,072 

♦Deficit. 

Net  profits  were  equal  to  5.57  per  cent,  earned  in  1917 
after  deducting  War  Taxes,  compared  with  6.43  per  cent,  in 
1916  and  6.24  per  cent,  in  1915. 

The  Balance  Sheet  of  the  company  as  of  December  31, 
1917,  compares  with  the  previous  year  as  follows: — 


Assets:  1917 

Plant  less  Depreciation...  $895,784 

Materials  and  Supplies....  9,792 
Cash,  Accounts  Receivable 

and  Other  Investments.  2,467,852 

Total  Assets   $3,373,428 

Liabilities  1917 

Capital   $3,000,000 

Accounts  Payable   23,615 

Profit  and  Loss  Surplus...  349,813 


1916  Change 
$913,986    —  $28,202 
5,224    -f  4,568 


2,510,195 

$3,429,405 

1916 
$3,000,000 
66,721 
362,684 


42,343 


-  $55,977 
Change 


—  $43,106 

—  12,871 

Total   Liabilities   $3,373,428      $3,429,405    —  $55,977 

The  company's  trafiJic  showed  a  slight  falling  off  during 

1917    which    was    reflected    in    a    corresponding    decline  in 

earnings.     The  company  is  in  an  easy  cash  position,  however, 

as  net  cash  assets  amount  to  $41  a  share. 

Traffic  over  these  lines  since  the  dissolution  has  been  as 

follows: 

Other  Receipts 

(Barrels) 


Total  4  Months,  1918. 

Total  12  Months.  1917. 

Total  12  Months,  1916. 

Total  12  Months,  1915. 

Total  12  Months,  1914. 

Total  12  Months.  1913. 


Other  Receipts 
(Barrels) 
560,073 
1,844,264 
1,845,163 
1,753,336 
1,261,210 
1,435,856 


Deliveries 

(Barrels) 
Deliveries 
(Barrels) 
599,699 
1,801,261 
1,850,523 
1,731,153 
1,244,935 
1,592,730 


Cuml)erland  Pipe  Line  Company 


37 


Officers — President — R.  R.  Applegate. 

Vice-President — Charles  Shoemaker. 

Secretary  and  Treasurer — L.  E.  Lockwood. 
Transfer  Office — 323  Fourth  Avenue,  Pittsburgh,  Penna. 
Annual  Meeting — First  Monday  in  May. 


CUMBERLAND  PIPE  LINE  COMPANY 
Incorporated 

The  Cumberland  Pipe  Line  Company  was  incorporated  in 
1901  under  the  laws  of  Kentucky. 

Capital  Stock — The  authorized  capital  stock  is  $1,500,000, 
of  which  $1,488,851  is  outstanding.  Par  value  $100.  The 
original  capitalization  was  $100,000,  which  was  raised  to 
$1,000,000  prior  to  the  dissolution.  On  July  30,  1917,  the 
shareholders  authorized  an  increase  to  $1,500,000  and  sub- 
scription rights  at  par  to  the  extent  of  50  per  cent,  of  their 
holdings  were  extended  to  stockholders  up  to  October  15. 

Dividends — Since  the  dissolution,  the  company  has  paid 
annual  dividends  as  follows: 

1917 — Dec  15    10%      $148,8^9        1914 — Dec  15      5%  $50,000 
1916 — Dec  18      5%         50,000        1913 — Dec  15      6%  60,000 
1915— Dec  15      5%         50,000        1912— Dec  15      6%  60,000 
Total  Dividends  since  Dissolution   $418,879 

Properties — The  company  owns  350,000  barrels  of  iron 
tankage,  5  main  line  pumping  stations,  20  local  pumping 
stations  and  600  miles  of  pipe  line  of  various  sizes  from 
2-inch  to  6-inch  pipe. 

The  main  lines  embrace  51  miles  of  6-inch  and  154  miles  of 
4-inch  pipe,  extending  from  Monticello  Station  via  Somerset  and 
Licking  River  Junction  to  Clifford  on  Tug  Fork,  connecting 
at  that  point  with  the  Eureka  Pipe  Line  Company  and  from 
Page  Hollow  via  Lewis  to  Licking  River  Junction.  Oil  from 
the  Ragland  field  is  shipped  by  tank  cars  from  Salt  Lick, 
Bath  County.  With  the  opening  of  the  new  Irvine  Field  in 
Estill  County,  Kentucky,  in  1916,  the  company's  traffic  pros- 
pects increased  so  heavily  that  a  three-inch  trunk  line  was 
run  from  Leander  to  Ravenna,  where  a  storage  farm  and 
pump  station  was  erected,  while  a  35,000  barrel  storage 
tank  and  a  pump  station  were  erected  at  Leander.  The  first 
oil  from  Irvine  was  run  into  the  line  in  April,  1916.  A  sec- 
ond four-inch  extension  was  laid,  with  branch  lines  to  the 
Station  Camp  pool,  ten  miles  southwest  of  Irvine  and  to 
Estill  Furnace,  an  eastern  extension  of  the  Irvine  district, 
A  third  four-inch  truck  line  connecting  up  the  Fitchburg  and 
Ashley  extensions  of  the  Irvine  pool,  was  completed  in  the 
summer  of  1917,  and  an  additional  line  to  take  care  of  Lee 
County  production  will  be  in  operation  during  the  summG;  of 
1918.  The  company  is  running  an  average  of  12,000  barrels 
daily  from  the  Kentucky  fields. 

Cumberland  Pipe  Line  Company's  financial  report  for 
1917  compares  with  that  of  the  previous  year,  as  follows: — 

1917  1916  Increase 

Net    Profit   $487,758       $179,366  $308,392 

Dividends   148,879  50,000  98,879 


Surplus 


$338,879 


$129,366 


$209,513 


38 


Cumberland  Pipe  Line  Company 


Net  earnings  were  equal  to  32.76  per  cent,  earned  on  $1,- 
488,851  capital  stock  outstanding-  at  the  close  of  the  year 
compared  with  17.9  per  cent,  earned  in  1916  and  3.2  per  cent, 
in  1915  on  $1,000,000  stock  outstanding  in  those  years. 

The  Balance  Sheet  as  of  December  31,  1917,  compares  with 
the  previous  year  as  follows: — 


$1,678,351  +$856,175 


Assets:  1917  1916  Change 

Plant   $2,032,903  $1,529,812  +$503,091 

Other   Investments   350,000  60,930  +  289,070 

Accounts  Receivable   72,339  61,954  +  10,385 

Cash    79,284  25,655  +  53,629 

Total  Assets   $2,534,526 

Liabilities  1917  1916  Change 

Capital    Stock   $1,488,851  $1,000,000  +$488,851 

Reserve  for  Depreciation..  354,084  232,773  +  121,311 

Accounts  Payable   40,788  63,618  —  22,830 

Bills  Payable   125,000  —  125,000 

Oil  Pur.  &  Sale  Contingent  54,964    +  54,964 

Surplus   595,839  256,960  +  338,879 


Total   Liabilities   $2,534,526      $1,678,351  +$856,175 

By  an  investment  of  $500,000  in  pipe  line  extensions,  fol- 
lowing $300,000  expended  for  the  same  purpose  in  1916,  the 
company  was  enabled  to  take  care  of  the  increasing  produc- 
tion in  the  Kentucky  fields.  While  its  increase  in  Plant 
Investment  during  the  year  was  around  33  per  cent.,  the 
resultant  increase  in  earnings  was  around  170  per  cent,  and 
the  increase  in  traffic  approximately  tHe  latter  figure. 

The  influx  of  new  capital  enabled  the  company  to  wipe 
out  a  cash  deficit,  finance  its  expansion  program,  double  its 
dividend  rate  on  an  increased  capitalization,  and  leave  the 
company  at  the  close  of  the  year  with  net  Cash  assets  of 
$30.95  a  share.  The  Book  Value  of  the  stock  increased  from 
$125  a  share  on  10,000  shares  to  $140  a  share  on  14,888 
shares.  At  the  close  of  the  year  the  company  was  in  posi- 
tion to  continue  its  plant  expansion  without  further 
financing". 

A  review  of  the  company's  operations  since  the  dissolu- 
tion shows  the  following: 


Invested  Depreciation 
Earnings     Rate        in  Plant    for  Year  Surplus 

1917                $487,758      32.76%      $503,091    $121,311  $595,839 

1916                  179,366      17.90%        317,365        35,674  256,960 

1915                    32,001       3.20%         25,789       35,024  127,594 

1914                    31,688       3.16%              317        22,128  145.594 

1913                    72,143       7.20%         20,453       40,271  163,907 

1912                    88,982        8.89%                          *99,636  151,765 

NOTE — On  June  30,  1911,  the  surplus  was  $110,559 

*Accrued  depreciation  to  December  31,  1912. 

Traffic — Traffic  statistics  for  the  past  five  years  follow: 

Runs              Deliveries  Tanl^age 

(Barrels',          (Barrels)  (Barrpi*^ 

1912                                     475,546              562,112  129,225 

1913                                      522,552               518,021  85,107 

1914                                      479,608               405.711  172.375 

1915                                    407,078              403,23«  169.25© 

1916                                  1,144,750            1,041,301  197,557 

1917                                   3,015,640            2,993,071  147,665 

1918  4  months)                1,171,022            1,161,145  143,661 


Eureka  Pipe  Line  Company 


39 


Directors — Forrest  M.  Towl,  New  York;  John  Bahan,  Win- 
chester, Ky. ;  H.  B.  Robinson,  Oil  City,  Pa.;  Joseph 
Geig-er,  Monticello,  Ky. ;  J.  S.  Gardner,  W.  Liberty,  Ky. 

Officers — President — Forrest  M.  Towl. 

Vice-President  and  General  M^. — John  Bahan. 
Vice-President — H.  B.  Robinson. 

Secretary  and  Treasurer — E.  R.  Shepard. 
Ass't  Sec'y  and  Treas. — C.  A.  McLouth. 
Assistant  Treasurer — J.  H.  Baker. 
Main  Office — Winchester,  Ky. 

Annual  Meeting- — First  Thursday  in  December. 
Transfer  Office — No.  210  Seneca  Street,  Oil  City,  Penna. 


THE  EUREKA  PIPE  LINE  COMPANY 

The  Eureka  Pipe  Line  Company  was  incorporated  in  1890 
jnder  the  laws  of  West  Virginia. 

Capital  Stock — The  capital  stock  is  $5,000,000.  Par  value, 
$100. 

Dividends — Since  the  dissolution,  dividends  have  been  de- 
clared, payable  as  follows 


1918- 

— May  1 

6% 

5^300,000 

1915- 

— Feb  2 

6% 

$300,000 

Feb  1 

6% 

300,000 

1914- 

—Nov  2 

6% 

300,000 

1917- 

— Nov  1 

6% 

300,000 

Aug  1 

8% 

400,000 

Aug  1 

6% 

300,000 

May  1 

8% 

400,000 

May  1 

6% 

300,000 

Feb  2 

10% 

500,000 

Feb  1 

6% 

300,000 

1913- 

—Nov  1 

10% 

500,000 

1916- 

—Nov  1 

6% 

300,000 

Aug  1 

10% 

500,000 

Aug  1 

6% 

300,000 

May  1 

10% 

500,000 

May  1 

6% 

300,000 

Feb  1 

10% 

500,000 

Feb  1 

6% 

300,000 

1912- 

-Nov  1 

10% 

500,000 

1915- 

—Nov  1 

6% 

300,000 

Aug  1 

10% 

500,000 

Aug  2 

6% 

300,000 

May  1 

10% 

500,000 

May  1 

6% 

300,000 

Total  Dividends  since  dissolution   $9,300,000 


Properties — The  company  owns  and  operates  4.216  miles 

of  pipe  line,  with  9  trunk  line  pumping  stations  and  84  local 
pumping  stations,  and  owns  2,798,000  barrels  of  iron  tankage. 

The  pipe  lines  reach  nearly  all  of  the  wells  in  West  Vir- 
ginia. In  addition  to  its  lines  gathering  oil  from  these  wells, 
the  trunk  lines  of  the  company  are  engaged  in  interstate 
handling  of  oil. 

The  trunk  lines  extend  from  Clifford  on  Tug  Fork,  Eureka 
and  Sisterville  via  Branden  and  Downs  to  Morgantown; 
from  Sisterville  to  Littleton;  from  Sand  Fork  via  Ten  Mile 
and  Downs  to  Morgantown;  from  Downs  to  Minor  and  Downs 
to  Dolls  Run. 

From  Morgantown  to  State  Line  via  Dolls  Run  there  are 
two  6-inch  and  two  8-inch  trunk  lines  connecting  with  the 
South  West  Pennsylvania  Pipe  Lines. 

From  Morgantown  northeast  to  connect  with  the  lines  of 
the  Southern  Pipe  Line  Company  at  Pennsylvania  State  Line 
there  are  seven  6-inch  lines. 

The  company  receives  Kentucky  oil  from  the  Cumber- 
land  Pipe  Line  at  Clifford. 


40 


Eureka  Pipe  Line  Company 


Earnings — The  company's  earnings  and  dividends  since  the 


dissolution 

have  been 

as  follows: 

Book 

Net  Profits 

Rate 

Dividends 

Surplus 

Value 

1917 

$1,111,883 

22.23% 

$1,200,000 

$4,465,767 

$189.31 

1916  

1,322,069 

26.44% 

1,200,000 

4,553,887 

190.07 

1915 

992,247 

19.84% 

1,200,000 

4,431,882 

188.63 

1914 

1,416,134 

28.32% 

1,599,997 

4,639,579 

192.79 

1913 

1,954,305 

39.08% 

1,999,990 

4,823,442 

196.47 

1912  

2,618,389 

52.37% 

1,499,989 

4,869,127 

197.38 

Eureka  Pipe  Lfine  Company's  financial  statement  for  1917 
compares  with  the  previous  year  as  follows: — 

1917  1916  Decrease 

♦Profits   $1,111,883       $1,322,069  $210,186 

Dividends   1,200,003  1,200,003   

Surplus   


t$88,120 


$122,066  $210,186 


*Equal   to    22.23   per   cent,    in    1917   on    $5,000,000  capital 

stock  in  comparison  with  26.44  per  cent,  in  1916. 
fDeficit. 

The  company's  Balance  Sheet  as  of  December  31,  1917, 
compp.res  as  follows: — 

Assets:  1917  1916  Change 

Plant    $9,871,602      $9,674,285  +$197,317 

Other  Investments   1,648,413       1,124,413    -j-  524,000 

Accounts  Receivable   185,278  693,935    —  508,657 

Cash    326,820   446,550    — JL19/730 

Total  Assets   $127032~,113    $11,9397182  ^f>9279^ 

Liabilities  1917  1916  Change 

Capital   Stock   $5,000,000  $5,000,000   

Depreciation    2,012,442        1,738,189  +$274,253 

Accounts  Payable.   321,354  309,306    +  12,048 

Oil  Pur.  &  Sale  Contingent        232,549  337,800    —  105,251 

Profit  and  Loss   4,465,767       4,553,887    —  88,120 

Total   Liabilities          $12,032,113    $11,939,182    +  $92,931 

The  decline  in  the  company's  earnings  may  be  traced  to 
the  falling  off  in  its  "gathering  line"  business,  due  to  the 
progressive  exhaustion  of  the  West  Virginia  fields.  Its  trunk 
line  traffic,  which  is  less  profitable  showed  an  appreciable 
increase,  as  it  receives  all  the  oil  gathered  in  Kentucky  by 
the  Cumberland  Pipe  Line  Company.  The  Book  Value  of  the 
stock  fell  to  $189.31  a  share,  of  which  $36.78  represents  net 
cash  assets. 

Traffic — Runs,  receipts  and  deliveries  of  the  line  since  the 
dissolution  are  as  follows: 

Runs         Other  Receipts  Deliveries 

1918  (3  mos.)   1,506,912  3,181,050  4,791,635 

1917   7,144,670  13,678,574  20,496,208 

1916   7,737,768  11,064,700  19,992,288 

1915   8,368,851  8,450,178  16,191,510 

1914   8,986,601  8,709,041  16,285,753 

1913   10,764,342  11,245,908  21,948,350 

1912   11,499,665  13,394,733  24,656,482 

Officers — President — Forrest  M.  Towl,  New  York  City. 

Vice-Pres.   and  Gen'l  Mgr. — W.   J.  Alexander, 

Parkersburg,  W.  Va. 
Vice-President — A.   D.  McVey. 
Secretary  and  Treasurer — E.  R.  Shepard. 
Asst.  Sec'y  and  Treas. — C.  A.  McLouth  and  E.  W. 
Ziegler. 

Directors — Forrest  M.  Towl,  W.  J.  Alexander,  J.  Cochrane, 

A.  D.  McVey,  John  J.  Kinney. 
Transfer  Office — 210  Seneca  Street,  Oil  City,  Pennsylvania. 
Annual  Meeting — Fourth  Thursday  in  January. 


Galena-Signal  Oil  Company 


41 


GALENA-SIGNAL  OIL  COMPANY 

The  Galena-Sig-nal  Oil  Company  was  incorporated  in  1901 
under  the  laws  of  Pennsylvania  as  a  consolidation  of  the 
Galena  Oil  Works  and  the  Signal  Oil  CompanJ^  The  Galena 
Oil  Companj^  was  organized  as  early  as  1869  by  General 
Charles  Miller,  who  purchased  certain  patents  for  making 
lubricating  oils.  These  oils  had  immediate  success  through 
the  striking  demonstrations  of  their  results  on  many  railroads 
in  the  United  States. 

By  1879  the  use  of  Galena  Oils  had  increased  to  such  an 
extent  that  General  Miller  and  his  partners  controlled  the 
trade  in  lubricating  oils  with  railroads  operating  about  40  per 
cent,  of  the  railway  mileage  in  the  United  States. 

Recently  the  company  was  credited  by  Government  offi- 
cials with  being  one  of  the  first  companies  whose  product 
successfully  passed  the  chemical  and  service  tests  for  aero- 
plane lubrication  in  the  Liberty  motor. 

Capitalization — The  present  capitalization  of  the  company 
consists  of  $2,000,000  eight  per  cent  preferred  stock  and  $12,- 
000,000  common  stock,  the  latter  having  been  increased  from 
$8,000,000  by  a  50  per  cent,  stock  dividend  on  May  15,  1913. 

Stockholders  met  on  May  31,  1918,  and  authorized  an  in- 
crease of  the  common  stock  from  $12,000,000  to  $20,000,000 
and  to  create  a  new  class  of  8  per  cent,  cumulative  preferred 
stock  to  the  amount  of  $8,000,000.  The  company  also  was 
empowered  by  the  stockholders  to  make  this  new  preferred 
stock  redeemable  on  three  months'  notice  at  $115  a  share. 

With  the  approval  of  the  capital  increase,  the  company 
has  arranged  to  issue  $2,000,000  of  the  new  preferred  and  $4.- 
000,000  of  the  new  common  stock  in  part  payment  for  the 
capital  stock  of  the  American  Republic  Corporation,  a  holding 
company  for  all  of  the  stock  of  the  Republic  Production  Com- 
pany and  the  American  Petroleum  Company  and  one-half  of 
the  stock  of  the  Petroleum  Refining  Company,  Inc.,  of  which 
the  Galena  Signal  Oil  Company  already  owns  50  per  cent. 
It  is  proposed,  moreover,  to  offer  an  additional  $4,000,000  of 
the  new  preferred  stock  for  subscription  at  par,  pro  rata, 
to  all  stockholders.  This  would  make  the  new  capitalization 
of  the  company  as  follows: 

Authorized  Outstanding: 

8%  Preferred  (Old)   $2,000,000'  $2,000,000 

8%  Preferred  (New)   8,000,000  0,000,000 

Common  Stock   20,000,000  16,000,000 

In  the  official  call  for  the  special  meeting,  the  objects  of 
the  proposed  increase  of  capitalization  were  stated  as  follows: 

"To  acquire  property  at  Houston,  Texas,  viz.,  producing 
property,  on  which  there  are  now  forty-tw^o  wells;  the  aver- 
age daily  production  for  the  year  1917,  being  3,690  barrels; 
including  pump  house,  rigs,  tanks  and  other  equipment. 

"Tank  farm  of  141  acres,  on  which  there  are  forty-eight 
steel  tanks,  of  55,000  barrels  capacity  each,  holding  in  stor- 
age about  2,271,000  barrels  of  crude  oil;  also  necessary  pump- 
ing machines  and  equipment. 

"The  Norsworthy  Farm  of  80  acres,  on  the  Houston  Ship 
Canal,  with  dock,  tanks,  pump  house  and  equipment. 

"Main  pipe  line  of  twenty-four  miles  of  six-inch  pipe,  with 
right-of-way  owned,  together  with  necessary  gathering' lines. 

"One-half  inteVest  of  new  refinery  and  550  acres,  on  the 
Houston  Ship  Canal,  your  company  already  owning  one-half 
interest. 


42  Galena- Sigmal  Oil  Company 


"The  acquisition  of  this  property  will  enable  your  company 
to  extend  its  business  into  a  larger  field  of  operations  and 
thereby  establish  a  greater  degree  of  permanency  for  your 
company. 

"It  may  simply  and  briefly  be  stated  that  the  production 
from  the  Humble  Field  is  a  naphthene  base  oil,  from  which 
the  finest  quality  of  light  colored  oils  are  obtained  for  the 
lubrication  af  all  kinds  of  machinery,  such  as  aeroplanes, 
automobiles,  gas  engines,  air  compressors,  turbines,  Diesel 
engines,  etc. — oils  in  every  respect  that  will  meet  the  most 
exacting  specified  requirements  of  the  United  States  Navy, 
owing  to  their  good  body,  low  cold  test  and  other  essential 
qualities. 

"The  various  grades  of  lubricating  oils  that  can  be  manu- 
factured from  the  Humble  Field  oil  are  superior  to  any  other 
oils  to  be  had  in  the  market,  not  excluding  the  Franklin  and 
heavy  West  Virginia  oils,  as  regards  the  high  viscosity  and 
remarkable  low  cold  test.  From  a  business  point  of  view  the 
possibility  of  expansion  and  proper  development  of  this 
property  should  cer.tainly  make  a  very  valuable  acquisition  to 
your  com.pany. 

"There  is  a  great  demand  for  the  oils  manufactured  from 
the  Humble  production  in  this  country  as  well  as  in  European 
countries  and  South  America — therefore,  by  acquiring  this 
property  your  company  will  be  in  a  position,  to  supply,  de- 
velop and  establish  a  trade  not  heretofore  possible. 

"From  a  very  careful  investigation,  the  estimated  earnings 
to  accrue  as  a  result  of  the  purchase  of  these  properties  would 
be  as  follows: 

Estim,ated  Earnings  from  Property 


to  be  Acquired   $1,000,000 

8%  on  $2,000,000  Preferred  Stock...  $160,000 

12%  on  $4,000,000  Common  Stock...  480,000 

Interest  Charges    168,000  808,000 


Surplus   $193,000 


"After  the  additional  $4,000,000  of  preferred  capital  stock  is 
sold  and  proceeds  empl©yed  in  enlarging  refinery  and  the  pur- 
chase of  steamers,  tank  cars,  etc.,  as  mentioned  in  Notice  of 
Special  Meeting,  the  estimated  result  of  increased  capacity 
would  be  as  follows: 

Estimated  Earnmgs  on  Property  to 


be  Acquired  and  New  Investment  $3,000,000 
8%  on  Total  New  Issue  of  $6,000,000 

Preferred  Stock    $480,000 

12  Yo  on  $4,000,000  Common  Stock..  480,000 

Interest  Charges   168,000  1,138,000 


Surplus   $873,000 


"The  above  estimated  statement  of  earnings  is  on  the  new 
properties  to  be  acquired  and  the  proposed  increased  capital 
stock,  and  does  not  take  into  account  the  business  and  earn- 
ings of  the  company  on  its  present  capitalization." 

The  Texas  producing,  pipe  line  and  refining  properties  en- 
umerated are  owned  by  the  Petroleum  Refining  Company, 
Inc.,  a  Delaware  corporation  with  $1,500,000  capital,  and  the 
Republic  Production  Company  and  the  American  Petroleum 
Company,  both  Texas  Corporations,  each  capitalized  for  $1,- 
500,000  of  stock  and  $1,500,000  of  6%  bonds.  $200,000  of  the 
Republic  Production  Company's  bonds  have  been  retired. 
The  American  Republic  Corporation,  a  Delaware  corporation 


Galena-Sigmal  Oil  Company 


43 


with  $10,000,000  authorized  capital  and  $3,000,000  common 
and  $500,000  preferred  stock  outstanding,  owns  all  the  stock 
of  the  Republic  Production  Company  and  the  American  Pe- 
troleum Company  and  one-half  the  stock  of  the  Petroleum 
Refining  Company.  The  Republic  Production  Company  re- 
ported under  the  Texas  taxation  laws  an  output  of  1,670,581 
barrels  of  crude  oil  in  1917. 

"It  is  apparent  that  with  the  consummation  of  its  plans 
the  company  will  become  a  complete  unit  in  the  industry,  en- 
g-aging  in  the  production,  transportation,  refining  and  market- 
ing of  crude  oil  and  its  by-products. 

Dividends — Dividends  at  the  rate  of  8  per  cent,  per  annum 
have  been  paid  to  date  on  the  preferred  stock.  Since  the  dis- 
■olution,  dividends  on  the  common  stock  have  been  paid  as 
follows 


1918- 

— Mar  31 

3% 

$360,000 

1914- 

— Dec  31 

3% 

$360,000 

1917- 

—Dec  31 

3% 

360,000 

Sep  30 

3% 

360,000 

Sep  29 

3% 

360,000 

Jun  30 

3% 

360,000 

Jun  30 

3% 

360,000 

Mar  31 

3% 

360,000 

Mar  31 

3% 

360,000 

1913- 

—Dec  31 

3% 

360,000 

1916- 

—Dec  31 

3% 

360,000 

Sep  30 

3% 

360,000 

Sep  30 

3% 

360,000 

Jun  30 

4% 

480,000 

Jun  30 

3% 

360,000 

May  15 

50% 

Stic.  Div. 

Mar  31 

3% 

360,000 

Mar  31 

4% 

320,000 

1915- 

—Dec  31 

3% 

360,000 

1912- 

—Dec  31 

4% 

320,000 

Sep  30 

3% 

360,000 

Sep  30 

4% 

320,000 

Jun  30 

3% 

360,000 

Jun  30 

4% 

320,000 

Mar  31 

3% 

360,000 

Mar30 

4% 

320,000 

Total  Dividends  since  dissolution: 


Properties — This  company  is  engaged  in  the  manufacture 
of  lubricating  and  signal  oils,  and  has  an  extensive  plant  at 
Franklin,  Pa.  It  also  owns  and  operates  plants  at  Toronto, 
Canada;  Parkersburg,  W.  Va. ;  Boston,  Mass.;  Rouen,  France, 
and  Elizabeth,  N.  J.  The  latter  plant  supplies  the  export 
trade.  Extensive  additions  to  this  plant  are  now  under  way 
on  125,000  square  feet  of  additional  land  which  the  com- 
pany has  acquired  recently.  As  a  producer  of  lubricating  oils, 
the  company  has  an  extensive  and  profitable  trade  with  rail- 
roads throughout  the  world  and  manufactures  one  hundred 
and  thirty  different  brands  of  oil  for  special  purposes  of 
railroads. 

The  oils  of  the  Galena-Signal  Oil  Company  are  the  stand- 
ard of  lubrication,  not  only  among  American  railways  In 
ireneral,  but  upon  nearly  all  of  the  railways  of  Canada,  South 
America  and  France,  with  an  increasing  demand  from  other 
foreign  countries.  The  company's  yearly  output  is  more  than 
800,000  barrels  of  lubricants,  from  which  it  supplies  over 
90  per  cent,  of  the  railroads  of  this  country;  75  per  cent,  of 
the  total  street  car  mileage  of  this  country;  70  per  cent,  of 
the  railroads  of  South  America,  and  a  goodly  percentage  of 
the  street  railroads.  The  company  recently  has  renewed  for 
ten  years  on  a  more  profitable  basis,  some  of  Its  important 
contracts  with  government-owned  French  railroads. 

The  Company  markets  its  oils  to  the  railroads  under  a 
contract  system,  guaranteeing  a  certain  mileage  performance 
of  equipment  with  due  efficiency,  per  gallon  of  oil  consumed. 
This  manner  of  purchasing  oils  has  proven  a  great  saving  in 
the  operating  expenses  of  the  railroads  everywhere,  and  haa 


Preferred 
Common 


$1,000,000 
8,920,000 


44 


Galena- Signal  Oil  Company 


also  resulted  in  building  up  an  enormous  business  for  the 
Galena-Signal  Oil  Company. 

In  order  to  keep  in  touch  with  the  individual  requirements 
of  the  various  railroads,  the  company  maintains  a  corps  of 
expert  mechanics,  who  study  the  requirements  and  differing 
conditions  to  be  met  with  in  actual  service. 

With  the  enormous  development  of  the  automobile  in- 
dustry, a  demand  has  arisen  for  special  brands  of  automobile 
lubricants,  which  this  company  has  met  with  such  success 
that  the  General  Motors  Company  and  other  large  organiz- 
ations depend  upon  it  for  all  lubricants  and  greases  in  getting 
their  cars  out  of  the  factory.  This  new  line  has  necessitated 
the  purchase  of  23  acres  adjoining  the  company's  plant  at 
Franklin,  where  a  compounding  plant  has  been  erected  for 
the  manufacture  of  motor  oils. 

The  company's  new  refinery  at  Galena,  Texas,  is  situated 
on  a  580-acre  tract  having  a  half  mile  frontage  on  the  Hous- 
ton Ship  Canal,  in  which  tankers  of  26-foot  draft  can  be 
handled.  The  plant  now  in  operation  consists  of  two  1,000- 
barrel  steam  stills  and  eight  500-barrel  crude  stills.  Exten- 
sions under  way  will  enable  the  plant  to  handle  15,000  barrels 
of  crude  daily.  Dr.  E.  R.  Lederer,  formerly  chief  chemist  of 
the  Atlantic  Refining  Company's  Eclipse  plant  at  Franklin, 
Pa.,  is  in  charge  of  the  refinery,  which  will  supply  a  large 
part  of  Galena's  foreign  business. 

The  company's  balance  sheet  as  of  December  31,  1917, 
compares  as  follows: 

Assets:                                                  1917  1916 

Cash    $.363,32^  $1,293,165 

Securities    1,851,645  1,002,206 

Accounts  Receivable   5,780,110  4,618,251 

Inventory    2,520,792  1,855,207 

Property  and  Plant   1,658,688  1,218,538 

Goodwill,  etc   6,950,000  6,950,000 


Total  Assets    $19,074,557  $16,937,367 

Liabilities 

Preferred  Stock    $2,000,000  $2,000,000 

Common  Stock   12,000,000  12,000,000 

Accounts  Payable    2,371,475  1,160,812 

Contingency   1,617,881  902,861 

Surplus    1,085,201  873,694 


Total  Liabilities    $19,074,557  $16,937,367 

Earnings  of  $2,526,527  are  indicated  for  1917  in  that  $211,- 
552  was  added  to  surplus  and  $715,020  to  Contingency  Reserve 
after  payment  of  $1,600,000  in  dividends.  Earning  were  equal 
to  about  16.90%  on  the  common  stock.  This  compares  with 
Indicated  earnings  of  $1,804,682  for  1916,  equal  to  about 
11.74%  on  the  common  stock. 

While  the  company's  cash  resources  decreased  during  the 
year  and  its  accounts  payable  doubled  in  amount,  the  com- 
pany increased  its  working  capital  to  $8,094,394,  an  increase 
of  $486,377  over  the  amount  at  the  close  of  the  previous  year. 
Officers — President — General  Charles  Miller. 

Vice-President — C.  C.  Steinbrenner. 
Officers — President — General  Charles  Miller. 

Vice-President — C.  C.  Steinbrenner. 
Vice-President — L.  J.  Drake,  Jr. 
Vice-President — G.  C.  Miller. 
.■  Secretary — J.  French  Miller. 

Assistant  Secretary — G.  F.  Proudfoet. 
Treasurer — E.  H.  Sibley. 


Illinois  Pipe  Line  Company 


45 


Directors — General  Charles  Miller,  L.  J.  Drake,  Jr.,  C.  C. 
Steinbrenner,  George  C.  Miller,  J.  French  Miller,  D.  D.  Mallory 
and  G.  F.  Proudfoot. 

Transfer  Office — Liberty  and  South  Park  Streets,  Franklin, 
Penna. 

Annual  Meeting — Fourth  Tuesday  in  February. 


ILLINOIS  PIPE  LINE  COMPANY 

The  Illinois  Pipe  Line  Company  was  incorporated  in  De- 
cember, 1914,  under  the  laws  of  Ohio,  to  take  over  the  Ohio 
Oil  Company's  trunk  and  gathering:  pipe  line  systems,  with 
the  equipment  belonging  thereto,  in  the  States  of  Illinois, 
Indiana,  Ohio  and  Pennsylvania. 

Capitalization — $20,000,000.     Par  value,  $100. 

The  200,000  shares  of  stock  were  distributed  pro  rata 
among  the  holders  of  the  600,000  shares  of  the  Ohio  Oil 
Company  on  February  1,  1915.  The  company  began  operation 
on  January  2,  1915. 

Dividends — The  company's  dividend  record  since  organiz- 
tion  is  as  follows: 


1918— Jun  29  8%  $1,600,000  1916— Jun  24  12%  $2,400,000 
1917 — Dec  17     10%     2,000,000  Jan  15     15%  3,000,000 

Jun  15  12%  2,400,000  1915— Jul  20  5%  1,000,000 
1916 — Dec  19     12%  2,400,000 

Total  Dividends  since  organization   $14,800,000 


Business — The  company  acts  as  a  common  carrier  of  cruda 
oil  in  the  States  of  Illinois,  Indiana,  Ohio,  and  Pennsylvania, 
in  which  its  extensive  systems  of  gathering  and  trunk  lines 
are  located. 

The  company  also  operates  three  short  lines  in  the  new 
Wyoming  oil  fields. 

Properties — The  company's  gathering:  lines  carry  mor« 
than  four-fifths  of  the  crude  oil  produced  in  the  Illinois  fleld. 
Its  main  trunk  line  extends  for  nearly  1,000  miles  from 
Wood  River,  111.,  on  the  banks  of  the  Mississippi  River  to 
Centerbridge,  Pa.,  joining  a  trunk  line  of  the  Prairie  PIp« 
Line  in  the  west  with  the  pipe  line  of  the  Standard  Oil  Com- 
pany of  New  Jersey  in  the  East.  Another  trunk  line  mni 
from  Martinsville,  111.,  to  Preble,  Ind.,  joining  there  the 
Indiana  Pipe  Line.  A  third  trunk  line  runs  to  Lima,  Ohio, 
and  effects  a  junction  with  the  Buckeye  system. 

It  Is  apparent  that  the  company's  trunk  line  system  fur- 
nishes a  direct  conne«tion  between  the  Mid-Continent  oil 
Oela  and  the  Atlantic  seaboard  refineries  and  by  reason  of 
this  is  assured  of  heavy  trafllc,  irrespective  of  production 
east  of  Mississippi  River. 

The  company  has  filed  with  the  Public  Utilities  Commis- 
jslon  of  Ohio  an  inventory  of  the  property  purchased  from 
the  Ohio  Oil  Company  as  follows: 

Illinois 


Fifty   tanks    $500,000 

Eight-inch  lines    1,322.000 

Twelve-inch    lines    150,000 

Three    stations    525,000 

Eleven  stations    550,000 

Coal,  office  furniture,  etc   175,000 

Telegraph  lines    82,000 

Gathering  lines  and  pumps   4,310,000 


46 


Illinois  Pipe  L.ine  Company 


Ohio 

Eight-Inch  lines    $3,679,000 

Twelve-inch  lines    1,155,000 

Four  stations    700,000 

Sixty-three  tanks    630,000 

Gathering  and  Wooster   lines   30,000 

Telegraph  and  equipment   78,500 

Furniture    105,000 


Indiana 

Eight-inch   lines    $2,737,000 

Twelve-inch    lines    1,388,0§^ 

Fifteen  tanks    150,000 

Fixtures,  etc   120,000 

Four  stations    700,000 

Telegraph  lines    92,600 

Gathering  lines   169,500 

Peamsylvania 

Coal  and  supply  lines  for  operating.  $250,000 

Cash    200,000 


Total  four  States   $19,998,6^ 

In  Wyoming,  the  company  has  in  operation  an  8-inch  trunk 
line  22  miles  in  length  from  the  Big  Muddy  field  to  Casper, 
Wyo.  The  company  also  has  315,000  barrels  of  steel  tankage 
in  the  Big  Muddy  field.  Two  other  short  lines  are  operated  in 
Wyoming,  one  from  the  Grass  Creek  field  to  Chatam,  whence 
the  oil  is  shipped  by  tank  cars  to  Casper,  and  one  from  the 
Buffalo  Basin  field  to  Greybull,  via  Frannie. 

Balance  Sheet — The  company's  balance  sheet  as  of  De- 
cember 31,  1917,  compares  with  that  of  the  previous  year  as 
follows: 

Assets:  1917  1916  Change 

Property    $19,764,846    $18,618,150  $1,146,696+ 

Cash  &  Accts.  Receivable  1,021,014  2,037,482  1,016,46»— 
Materials  and  Supplies..  281,188  176,061  105,127-f 
Other  Investments   412,000    412,0004- 

Total   Assets   $21,479,048  $20,831,693  $647,355+ 

Lriabilities : 

Capital  Stock    $20,000,000  $20,000,000   

Accounts    Payable   242,173  466,451  $224,278— 

Tax    Liability   1,199,243    1,199,243+ 

Surplus    37,632  365,242  327,610— 


Total  Liabilities. .  .  $21,479,048    $20,831,693  $647,355+ 

The  financial  statement  indicates  net  profits,  after  depre- 
ciation, of  $5,271,633  for  1917,  inasmuch  as  surplus  decreased 
$327,610  after  the  payment  of  $4,400,000  in  dividends  and  the 
setting  aside  of  $1,199,243  as  a  reserve  for  war  taxes. 

While  the  net  profits  were  greater  by  $441,215  than  those 
for  1916,  net  earnings  available  for  dividends  after  deducting 
$1,199,243  for  war  taxes  were  $4,072,390  as  compared  with 
$4,830,415  in  1916,  and  equal  to  about  20.36  per  cent,  earned 
on  t^e  stock  against  approximately  24.15  por  cent,  in  1916. 

The  value  of  the  company's  pipe  lines  increased  $1,146,696 
during  the  year  (after  depreciation,  the  amount  of  which  is 
not  indicated),  the  growth  being  due  to  pipe  line  extension.'^ 
In  Wyoming. 

Traffic  carried  by  the  company's  pipe  lines  since  organiz- 
ation has  been  as  follows: 


Indiana  Pipe  Line  Company 


47 


Runs  from  Wells    Other  Receipts  Deliveries 


(Barrels)  (Barrels)  (Barrels) 

1918  (4  mos.)                     3,071,319  211,459  3,476,752 

1917                                 10,954,066  5,312,172  16,983,693 

1916                                 12,578,141  13,672,789  28,956,653 

1915                                 14,045,285  9,214,981  20,835,261 

1914                                 17,088,736  309,600  15,080,208 


Otticers — President,  J.  RoDy  Penn,  Jr. 

Vice-President,  "Ward  A.  Miller. 

Treasurer,  J-  E.  Herr. 

Secretary,  O.  F.  Moore. 
Directors — J.    Roby   Penn,    Jr.,    Daniel    Roach,    George  P. 

Jones,   and   O.   F.   Moore,   Findlay,    O.,   Ward  A. 

Miller,  Lima,  O.,  and  M.  W.  Porter. 
Transfer  Office — Findlay,  Ohio. 


INDIANA  PIPE  LINE  COMPANY 

The  Indiana  Pipe  Line  Company  was  incorporated  March 
19,  1891,  under  the  laws  of  Indiana. 

Capital  Stociv — The  capital  stock  is  $5,000,000.  Par  v*»1u©, 
150. 

Dividends — Since  the  dissolution,  dividends  have  been  de- 
clared payable  as  follows: 


1918- 

— May  15 

6% 

$300,000 

1915 — Feb  12 

4% 

$200,900 

Feb  15 

10% 

500,000 

1914 — Nov  14 

5% 

250,000 

1917- 

—Nov  15 

6% 

300,000 

Aug  14 

6% 

300,000 

Aug- 15 

4% 

200,000 

May  15 

8% 

400,000 

May  15 

4% 

200,000 

Feb  14 

8% 

400,000 

Feb  15 

6% 

300,000 

1913 — Nov  15 

8% 

400,000 

1916- 

—Nov  15 

4% 

200,000 

Augl5 

8% 

400,000 

Augl5 

4% 

200,000 

May  15 

8% 

400,000 

Mayl5 

4% 

200,000 

Feb  15 

8% 

400,000 

Feb  15 

4% 

200,000 

1912— Nov  15 

8% 

400,000 

1915- 

—Nov  15 

4% 

200,000 

Aug  15 

6% 

300,000 

Augl4 

4% 

200,000 

May  15 

6% 

300,000 

May  15 

4% 

200,000 

Total  : 

Dividends  since 

Dissolution  

$7,350,000 

Properties — The  Indiana  pipe  lines  comprise  an  important 
link  in  an  extensive  system,  consisting  of  the  properties  of 
three  pipe  line  companies,  serving  the  Lima-Indiana  oil 
fields.  The  company  owns  complete  gathering  lines  and  col- 
lects direct  from  the  wells  all  oil  produced  in  the  State  of 
Indiana.  Its  importance,  however,  depends  upon  its  trunk 
lines,  which  carry  Mid-Continent  oil  destined  for  Canada  or 
that  goes  to  the  Atlantic  seaboard  on  the  Northern  route. 

The  company's  main  trunk  line  extends  from  Whiting 
Indiana,  to  the  Ohio  State  Line,  via  Kanakee,  Laketon  and 
Preble,  Indiana,  a  distance  of  about  127.5  miles,  the  system 
consisting  of  two  8-lnch  lines  and  one  8-inch  loop  to  each  of 
the  four  divisions. 

A  majority  of  the  collecting  lines  center  at  Montpelier, 
Indiana,  from  which  point  they  extend  to  Broad  Ripple,  near 
Indianapolis,  a  distance  of  65  miles;  to  Smlthfleld,  27  mlle«; 
to  Leyton,  13  miles;  to  Mount  Pleasant,  26  miles;  to  Preble, 
25  miles.  Other  branches  of  the  system  extend  from  Baker 
to  Laketon,  Indiana,  19  miles;  from  Grant,  Indiana,  to  Main 
Line,  16  miles;  and  from  Leyton,  Indiana,  to  Adgate,  Ohio. 
?1  miles. 

The  most  important  branch  line  projects  from  Preble  to 
Montpelier,  where  connections  are  made  with  the  lines  of  the 
Ohio  Oil  Company. 


48 


Indiana  Pipe  Line  Company 


The  company  has  four  large  main  line  pump  stations, 
between  Griffith  and  Preble,  and  numerous  branch  and  field 
lines  stations.  It  has  steel  tankage  capacity  of  1,500,000 
barrels  in  the  field,  and  at  Grifllth,  Whiting,  Preble  and 
Montpelier.  At  Whiting  the  company  supplies  the  crude  oil 
for  Standard  Oil  Company  Indiana's  main  refinery. 

This  pipe  line  system  was  constructed  in  1889  and  doubt- 
less the  depreciation  during  its  service  has  been  considerable. 
In  1911,  the  property,  including  the  pipe  line  and  telegraph 
equipment  onlj^,  was  assessed  for  taxation  at  a  valuation  of 
$5,130,000. 

It  is  clear  that  the  Company  must  depend  largely  upon 
the  trunk  line  business  for  the  greater  portion  of  its  futur« 
earnings,  owing  to  the  permanent  decline  in  production  In 
the   Indiana  fields. 

By  virtue  of  their  location,  the  Indiana  pipe  lines  will 
hold  the  traffic  from  the  mid-continent  field,  which  should 
increase  substantially  during  the  next  few  years,  on  account 
of  the  greater  demands  upon  the  newer  fields  of  that  western 
section  of  the  country. 

Balance  Sheet — The  company's  financial  report  for  1917 
compares  as  follo^^•s: — 

1917             1916  Increase 

Net  income  from  all  sources..  Sf;i,454,154    $1,800,886  $158,318 

Dividends                                        *1,200,000         900,000  300,000 

Carried  to  P.   &  L.  Acct   $254,154       .$400,836  $453,318 


*DivideRd  paid  in  the  first 
from   earning-s  in  1917. 

The  Balance  Sheet  as  of 
as  follows: — 

Assets: 

Pipe  Line  Plant   $4, 

Materials  and  Supplies.  .  .  . 
Cash,    Other  Investments 
and  Accounts  Receivable 


quarter  of  1918  is  distributed 

December    31,    1917,  compares 

1917  1916  Change 

,440,966  $4,773,077  —$322,111 
36,753  36,768    —  15 

4,838,219    +  935,171 


5,773,390 


Total  Assets  

Liiabilities : 

Capital  Stock   

Accounts  Payable   

Reserve   Account   for  Ac- 
crued Depreciation   

Fire  Insurance  Reserve... 
Profit  and  Loss  Surplus.  .  . 

Total  Liabilities   .  .  . 


$10,251,109 

$9,648,064 

+$603,045 

1917 

1916 

Change 

$5,000,000 

$5,000,000 

754,909 

479,553 

+$275,356 

1,763,096 

1,686,979 

+  76,117 

1,875 

4,457 

--  2,582 

2,731,229 

2,477,075 

+  254,154 

$10,251,109 

$9,648,064 

+$603,045 

The  company's  earnings  have  shown  a  steady  growth  since 
1914,  due  to  its  advantageous  position  as  the  terminal  line 
for  Standard  Oil  Company  of  Indiana,  which  uses  enormous 
quantities  of  crude  oil  at  its  Whiting,  Ind,,  plant.  The 
company  also  gets  the  benefit  of  hauling  Mid-Continent  crude 
destined  for  the  big  refinery  of  the  Imperial  Oil  Company, 
Ltd.,  at  Sarnia,  Canada.  The  company  was  able  during  1917 
to  increase  its  dividend  disbursement  $300,000  and  add  $659,- 
800  to  its  working  capital.  The  Book  Value  of  the  stock  at 
the  close  of  the  year  was  $77.31  a  share  ($50  par),  of  which 
$50.18  represented  net  cash  assets. 


National  Transit  Company 


49 


Deliveries — Statistics  of  the  company's  traffic  since  the 
dissolution  are  as  follows: 

Other  Receipts        Runi»  Deliveries 

(Barrels)          (Barrels)  (Barrels) 

Total  12  months,  1912.     31,491,859            739,922  32,155,776 

Total  12  months,  1913.     32,343,486            625,103  32.894,071 

Total  12  months,  1914.     25,121,350            493,639  25,25fi,059 

Total  12  months,  1915.     28,973,944            363,708  29,771,943 

Total  12  months,  1916.     34,842,759            273,702  34,697,420 

Total  12  months,  1917.     36,884,718            188,523  35,886,552 

Total    4  months,  1918.     10,380,274              56,071  10,622,084 

A  review  of  the  cohipany's  operations  since  the  dissolution 
shows  the  following": 

Additions  Depreci- 

Net  Profits      Rate      to  Plant      ation  Surphis 

1917               $1,454,154      29.08%       $                $76,117  $2,731,229 

1916                 1,300,836      26.00%        38,666      179,779  2,477,075 

1915                 1,271,416      25.43%      115,991      173,265  2,076,239 

1914                 1,268,792      25.30%        61,596      345,870  1,604,822 

1913                 1,770,972      35.00%        26,432      418,154  1,486,031 

1912                 1,976,383      39.50%                         569,911  1,315,058 

On  December  31,  1906,  the  company's  net  assets  were  $4.- 

365.744  against  $7,731,229  on  December  31,  1917,  showing  a 
growth  of  $3,365,485  over  the  period. 

Directors — D.   S.   Bushnell,   New  York;    A.  C.  Beeson,  D 

M.  Collett,  Walter  C.  Shields,  all  of  Hunting-ton,  Ind.;  and 
Georg-6  E.  Pifer,  Montpelier,  Ind. 

Officers — President — D.  S.  Bushnell. 

Vice-President — A.  C.  Beeson. 
Secretary — Georg-e  Chesebro. 
Treasurer — W.  A.  Harris. 
Transfer  Office — No.  26  Broadway,  New  York  City. 
Annual  Meeting — Third  Thursday  in  March. 


NATIONAL  TRANSIT  COMPANY 

The  National  Transit  Company  was  incorporated  In  1861 
under  the  laws  of  Pennsylvania.  It  was  formerly  a  holding 
company  for  pipe  line  stocks,  subsequently  turned  over  to 
the  Standard  Oil  Company  of  New  Jersey. 

Capital  Stock — The  capital  stock  was  formerly  $25,455,150, 
with  shares  at  a  par  value  of  $50.  In  1911,  however,  the 
capital  stock  was  reduced  to  $12,727,575,  with  par  value  of 
shares  at  $25, 

A  further  reduction  of  the  capital  to  $6,362,500  by  the 
retirement  of  103  shares  and  the  distribution  of  the  com- 
pany's surplus  by  a  cash  dividend  of  $12.50  to  each  share,  was 
made  in  April,  1916.  The  new  share  have  a  par  value  of 
$12.50  and  all  fractions  have  been  eliminated. 

The  company  also  announced  the  segregation  of  its  ma- 
chinery business  from  its  pipe  line  operations  and  to  that 
end  has  Incorporated  the  National  Transit  Pump  and  Ma- 
chine Company,  under  Pennsylvania  laws,  with  a  capital  of 
$2,545,000.  Par  value  $25.  All  the  stock  with  the  exception 
of  ten  qualifying  shares  is  held  as  an  asset  by  the  National 
Transit  Company. 

The  object  of  this  segregation  was  mainly  to  take  ad- 
vantage of  the  exemptions  from  taxation  on  capital  investe«! 
In  manufacturing  in  the  State  of  Pennsylvania  and  also  to 


50 


National  Transit  Company 


keep  its  pipe  line  accounting-,  which  is  subject  to  the  scrutiny 
of  the  Interstate  Commerce  Commission,  free  from  other 
sources  of  revenue.  , 

The  company's  industrial  plant,  which  now  operates 
as  a  separate  unit  has  been  greatly  increased  in  the  last 
year  and  now  represents  an  investment  of  $2,500,000.  It 
manufactures  gas  engines  and  heavy  oil  engines,  for  drilling 
and  pumping  oil  wells,  pumping  machinery  for  pipe  line 
systems  and  waterworks  plants;  pipe  line  tools  and  other  oil 
fiei^  accessories. 

An  official  statement  to  stockholders  concerning  th«  re- 
duction in  capital,  says  in  part: — 

"The  revenues  of  the  company  have  been  largely  de- 
creased by  reason  of  the  reduction  of  rates  for  transportingf 
oil,  which  became  effective  in  August,  1914.  In  the  judgment 
of  the  Board  of  Directors  the  present  capitalization  of  the 
National  Transit  Company  is  i)'  excess  of  the  amount  re- 
quired for  the  business  that  may  oe  done  by  the  company  at 
this  time. 

"There  is  no  prospect  of  expansion  of  its  business  through 
development  of  new  fields  of  production  within  the  territory 
where  it  operates;  therefore,  It  is  thought  well  to  conrert 
such  of  its  assets  as  may  be  necessary  for  the  purpose  into 
cash,  and  liquidate  the  stock  of  the  company  to  the  extent 
of  50  per  cent.,  making  the  par  value  of  the  shares  $12.50, 
Instead  of  $25;  and  the  total  amount  of  capitalization  $6,- 
362,500.  This  amount  is  just  about  equal  to  the  present  pipe 
line  investment,   less  depreciation." 

Dividends — Since  the  dissolution,  dividends  have  been  de- 
clared as  follows: 


1918- 

— Jun  15 

4% 

J  914— 

-Jun  15 

3% 

$381,827 

?917- 

—Dec  15 

4% 

254,500 

Maris 

3% 

381,827 

Jun  15 

4% 

254,500 

1913- 

-Dec  15 

3% 

381,827 

1916- 

—Dec  15 

4% 

254,500 

Sep  15 

3% 

381,827 

Apr  1 

50% 

6,363,786 

Jun  15 

3% 

381,827 

1915- 

—Dec  15 

2% 

254,551 

Mar  15 

3% 

381,827 

Sep  15 

2% 

254,551 

1912— 

-Dec  15 

3% 

381,827 

Jun  15 

2% 

254,551 

Sep  15 

3% 

381,827 

Mar  15 

2% 

254,551 

Jun  15 

3% 

381,827 

1914- 

—Dec  15 

3% 

381,827 

Mar  15 

3% 

381,827 

Sep  15 

3% 

381,827 

Total  Dividends  since  the 

.  .  $12,981,914 

Properties — Owns  about  1,300  miles  of  pipe  line  in  the 
State  of  Pennsylvania,  of  which  555  miles  are  trunk  line* 
and  745  miles  gathering  lines.  The  trunk  lines  extend  from 
Nedsky,  Allegheny  County,  where  connection  is  made  with 
three  branches  of  the  Southwest  Pennsylvania  Pipe  Ldne 
Company,  and  extend  in  a  northeasterly  direction  to  tHe  New 
York  State  line  near  Rixford,  where  connection  is  made  with 
the  New  York  Transit  Company.  Those  lines  aggregate  206 
miles.  The  eastern  lines  start  at  Colegrove,  where  the  oil 
Is  received  from  the  Northern  Pipe  Line,  and  extend  from 
Milway,  a  distance  of  175  miles.  From  Mllway  three  linee 
branch  out,  one  extending  to  Fawn  Grove,  SB  miles;  one  to 
Atlantic  Refining,  Point  Breeze,  7-0  miles;  one  to  Centerbridge, 
70  miles.  The  eastern  lines  aggregate  about  350  miles.  The 
gathering  lines  are  located  in  western  Pennsylvania,  and 
carry  about  twelve  per  cent,  of  the  total  trafflc.  The  bulk 
of  the  Company's  traffic  Is  long  haul. 

The  source  of  the  Company's  local  traffic  Is  the  Pennsyl- 
vania oil  region,  from  which  It  supplies  refineries  at  Olean. 
Pittsburgh   and  Franklin.     It  receives  mid-continent   oil  at 


National  Transit  Company 


51 


the  Pennsylvania  border  from  the  Buckeye  Pipe  Line  and 
at  it«  grreat  pumping  station  at  Bear  Creek,  Pa.,  acts  as  a 
transfer  a&ent,  switching  Pennsylvania  and  western  oil  over 

other  trunk  lines  to  the  Atlantic  seaboard. 

Th-e  National  Transit  Pump  and  Machine  Company,  which 
foi?«nerly  confined  its  activities  to  pipe  line  machinery  has 
entiered  the  the  general  commercial  field  and  has  established 
branch  offices  at  New  York,  Philadelphia,  Chicago  and  San 
PVancisc®.  The  company  has  doubled  the  capacity  of  its 
pilewrt,  as  well  as  its  mechanical  force,  and  now  employs  more 
than  1,500  men  in  its  Oil  City  shops.  The  company's  product 
Includes  practically  every  device  connected  with  pumping 
powers,  from  pipe  line  tools  and  fittings  and  pumps  of  the 
smallest  powers  to  the  immense  machines  turned  out  for 
municipal  water  works,  mines,  ofRce  buildings  and  factories, 
marine  service  or  pipe  line  pumping  stations. 

The  financial  statement  of  the  company  for  December  31, 
1917,  compares  as  follows: 

1917  1916 

Net  Earnings    $820,405  $1,208,891 

Dividends    509,000  354,500 

Other  Disbursements   2,510  110 


Surplus    $308,895  $954,281 

Assets:  1917  1916 

Pipe  Line  Plant   $8,137,442  $8,160,828 

Other  Investments    4,404,802  3,590,135 

Cash   523,404  333,852 

Accounts  Receivable    174,225  976,378 

Deferred   Assets     38,363  37,359 

Unadjusted  Debits    178,776  13,330 


Total  Assets    $13,457,012  $13,111,877 

Lfiabilities : 

Capital    Stock    $6,362,500  $6,362,500 

Current  Liabilities    336,371  730,225 

Accrued  Depreciation    2,630,057  2,203,109 

Unadjusted  Credits    449,891  446,745 

Surplus    3,678,193  3,369,298 


Total  Liabilities    $13,457,012  $13,111,877 

Net  earnings  for  1917  after  war  taxes  were  at  the  rate  of 
12.7  per  cent,  on  $6,362,500  stock  outstanding,  compared  with 
19  per  cent,  in  the  previous  year  and  8.05  per  cent,  in  1915  on 
$12,727,575  stock  outstanding  in  that  year.  The  Book  Value 
of  the  stock  has  increased  to  $19.73  a  share  as  compared  with 
$19.11  a  share  at  the  close  of  1916. 

Reviewing  the  operations  of  the  company  since  the  disso- 
lution affords  the  following  comparison: 

Net  Profits        Rate      Depreciation  Surplus 

1917..   $820,405  12.70%        $426,948  $3,678,193 

1916   1,208,891        *19.00%  429,607  3,369,298 

1915   1,024,631  8.05%     tlJ73,502  2,415,017 

1914   1,482,187         11.60%    2,408,592 

1913   2,315,556         18.00%    2,453,715 

1912   1,909,806         15.00%    1,665,46« 

♦After  50  per  cent,  reduction  in  capital. 

tAccrued  depreciation  f j  om  Dec.  31.  1911. 


52 


New  York  Transit  Company 


Traffic — The  company's  traffic  in  recent  years  is  set  forth 
as  follows:  — 

Other  Receipts 

(Barrels) 

Total  4  months,  1918.  5,609,003 
Total  12  months,  1917.  17,867,886 
Total  12  months,  1916.  18,962,962 
Total  12  months,  1915.  16,624,243 
Total  12  months,  1914.  16,451,353 
Total  12  months,  1913.  20,957,987 
Total  12  months,  1912.  21,502,500 
Officers — President — W.  V.  Miller. 

Vice-President — R.  Huyck. 

Secretary — r.  Ball. 

Assistarii  Secretary — R.  C.  Lay. 

Treasurer — C    H,  Lay. 

Assistant  Tieasurer — D.  R.  Mackenzie. 
Transfer  Office— .No.  206  Seneca  Street.  Oil  City,  Penna. 
Annual  Meeting: — First  Monday   in  May. 


NEW  YORK  TRANSIT  COMPANY 

The  New  York  Transit  Company  was  incorporated  Jan- 
uary 18,  1S93,  under  the  laws  of  New  York  State.  The  Com- 
pany purchased  from  the  National  Transit  Company,  at  the 
time  of  organization,  the  line  from  the  New  York  State  line 
throug-h  Glean  to  the  New  Jersey  border  and  seaboard;  also 
the  line  from  Olean  northwest  to  Buffalo  and  gathering  linea 
in  New  York  State. 

Capital  Stock — The  capital  stock  is  $5,000,000.  Par  value, 
$100. 


DiA-idends — Since  the  dissolution,  dividends  have  been  paid 
as  follows: — 


1918- 

— Apr  15 

8% 

$400,000 

1915- 

— Jan  15 

5% 

$250,000 

Jan  15 

6  7f 

300,000 

1914- 

—Oct  15 

6% 

300,000 

1917- 

—Oct  15 

6% 

300,000 

Jul  15 

8% 

400,000 

Jul  14 

4% 

200,000 

Apr  15 

10% 

500,000 

Apr  14 

4% 

200,000 

Jan  15 

10% 

500,000 

Jan  15 

6% 

300,000 

1913- 

—Oct  15 

10% 

500,000 

1916- 

—Oct  15 

A% 

200,000 

Jul  15 

10% 

500,000 

Jul  15 

4% 

200,000 

Apr  15 

10% 

500,000 

Apr  15 

A% 

200,000 

Jan  15 

10% 

500,000 

Jan  15 

4% 

200,000 

1912- 

—Oct  15 

10% 

500,000 

1915- 

—Oct  15 

4% 

200,000 

Jul  15 

10% 

500,000 

Jul  15 

4% 

200,000 

Apr  15 

10% 

500,000 

Apr  15 

4% 

200,000 

Total  Dividends  since  the 

^8,550,000 

Properties — The  company  owns  and  operates  its  main 
trunk  line,  about  300  miles  in  length,  extendinj?  from  ()!f^»r' 
N.  Y.,  to  Unionville,  X.  Y.,  where  oil  is  transferred  to  what 
was  formerly  a  private  pipe  line  of  the  Standard  Oil  Company 
of  New  Jersey  running  from  Unionville  to  Bayonne,  N.  J.  An 
off-shoot  of  this  line  at  "Weehawken,  N.  J.,  crosses  under  the 
Hudson  River,  New  York  City  and  the  East  River  to  deliver 
oil  to  the  Standard  Oil  of  New  York  refineries  in  Long  Island 
City  and  Brooklyn.  These  lines  of  the  Standard  Oil  Company 
of  New  Jersey  were  purchased  late  in  1915  by  the  New  York 
Transit  Company  and  are  now  operated  as  part  of  its  system. 
A  branch  line,  56  miles  in  length,  runs  from  Olean,  N.  Y.,  to 
Buffalo.  The  main  trunk  line  is  a  triple  six-inch  line  capable 
of  handling  45,000  barrels  a  day. 

New  York  Transit  is  assured  a  heavy  and  profitable  traffic 
It  all  times,  since  it  supplies  large  refineries  of  the  Standard 


Runs 

(Barrels) 
752,654 
2,523,010 
2,577,165 
2,695,140 
2,722,515 
2,707,525 
2,939,549 


Deliveries 
(Barrels) 
6,373,120 
20,375,452 
21,702,953 
19,411,408 
18,956,586 
23,526,265 
24,687,692 


New  York  Transit  Company 


53 


Dil  of  New  York  at  Long  Island  City  and  Buffalo,  and  the 
refinery  at  Bayonne  of  the  Standard  Oil  Company  of  New 
Jersey.  The  company  owns  about  one-third  of  the  tankage 
at  Clean,  N.  Y.,  which  is  one  of  the  largest  storage  points  in 
the  United  States. 

The  financial  statement  of  this  company  for  1917  com- 
pared with  that  of  the  previous  year,  is  as  follows: 

1917  1916  Increase 

Net  Profits    $1,461,618    $1,339,121  $122,497 

Dividends   1,000,000        900,000  100,000 


Surplus    461,618       $439,121  $22,497 

The  above  earning:s  are  equal  to  29.23  per  cent,  in  1917  on 
$5,000,000  capital  stock  compared  with  26.78  per  cent,  in 
1916  and  16.27  per  cent,  in  1915. 

The  Balance  Sheet  as  of  December  31,  1917,  compares  as 
follows: — 

Assets:  1917 

Pipe  Line  Plant  ,  $6,689,235 

Materials  and  Supplies   212,080 

Cash,    OtheF  Investments 

and  Accounts  Receivable  6,023,518 


Total  Assets    $12,924,833 

I^iabilities:  1917 

Capital    Stock    $5,000,000 

Accounts  Payable    656,489 

Reserve   Account    for  Ac- 
crued Depreciation    ....  1,256,383 
Fire  Insurance  Reserve...  12,392 
Profit  and  Loss  


Total  Liabilities 


5,999,569 


1916 

Cliange 

$6,683,336 

+  $5,899 

77,789 

+  134,291 

5,684,896 

4-  338,622 

$12,446,021 

+$478,812 

1916 

Change 

$5,000,000 

669,347 

—  $12,858 

1,228,477 

-f  27,906 

10,247 

+  2,145 

5,537,950 

-f  461,619 

$12,446,021 

+$478,812 

Although  the  company  traffic  expanded  very  little  in  1917, 
it  was  able  to  increase  its  earnings  substantially  through 
operating  economies  resulting  from  its  acquisition  of  short 
line  dividends  would  be  $24.66.  A  holder  of  one  share  of  Ohio 
N,  Y.,  during  1916.  Earnings  were  practically  $13  a  share 
more  than  before  acquisition  of  these  lines.  As  a  result  the 
company  increased  its  1917  dividends  to  $20  a  share  and 
will  be  able  to  pay  liberally  during  191S.  The  Book  Value  has 
advanced  to  $220  a  share  of  which  $107.34  represents  net 
cash  assets. 

Traffic — Operations   Since  the  dissolution  follows: 


Total  12  months,  1912 

Total  1^  months,  1913 
Total  12  months,  1914 
Total  12  months,  1915 
Total  12  months,  1917 
Total    4  months,  191S 


Other  Rei'eipts 

(Barrels) 
.  14,450,169 
.  14,762,156 
11,444,816 
11,054,733 
14,492,490 
5,166,613 


Runs 
(Barrels) 
182,291 
196,510 
203,857 
185,411 
168,012 
48,285 


Deliveries 

(Barrels) 
15,134,912 
15,443,721 
11,625,445 
11,069,067 
15,074,107 
5,479,6,)6 


The  company's  growth  and  earnings  for  the  past  six  years 
are  shown  as  follows: 


Earnings 
1917   $1,461,618 


1916. 
1915. 
1914. 
1913. 
1912. 


1,399.121 
813,729 
1,434,741 
2,070,495 
2,420,211 


Rate 
29.23% 
26.789r 
16.27% 
28.06 
41.50 
48.40% 


Plant 
Additions 
$5,899 
22  223 
1,479;032 
1,797 
129,233 


Depreci- 
ation 
$27,906 
55,373 
78,678 
101,402 
419,433 
573,590 


Surphis 
$5,999,569 
5,537,950 
5,202,434 
5,085,100 
5,100,359 
5,029,864 


54 


Northern  Pipe  Line  Company 


Directors — D.  S.  Bushnell,  George  Chesebro,  W.  A.  HarrU, 
J.    R.    Faat,   New   York  City;   George   H.   Cobb,   A.   J.  Mo- 
Clatchey,   H.   R.   Rowe,   Binghampton,   N.  Y. 
Officers — President — D.  S.  Bushnell. 

Vice-President — George  H.  Cobb. 
Secretary — George  Chesebro. 
Treasurer — W.  A.  Harris. 
Transfer  Office — No.  26  Broadway,  New  York  City. 
Annual  Meetini: — Last   Tuesday   in  January. 


NORTHERN  PIPE  LINE  COMPANY 

The  Northern  Pipe  Line  Company  was  incorporated  July  8, 
1889,  under  the  laws  of  Pennsylvania. 

Capital  Stock — The  capital  stock  was  $1,000,000,  but  in 
1906  this  was  increased  to  $4,000,000.     Par  value,  $100. 

Dividends — Since  the  dissolution,  dividends  have  been  paid 
as  follows: 


1918— Jul  1 
Jan  3 

1917 — Jul  2 
Jan  5 

1916— Jul  1 
Jan  2 

1915 — Jul  1 


5%  $200,000 

9  %  $360,000 

5%  200,000 

5%  200,000 

5  %  200,000 

5%  200,000 

5  %  200,000 


1915— Jan  2 
1914— Jul  1 

Jan  2 
1913 — Jul  1 

Jan  2 
1912— Jul  1 


5%  $200,000 

5%  200,000 

5%  200,000 

5%  200,000 

5%  200,000 

5%  200,000 


Total  Dividends  since  the  Dissolution   $2,760,000 

Properties — The  company  owns  a  trunk  pip«  lin«  system 
227  miles  in  length,  embracing  a  total  of  525  miles  of  5,  6  and 
8  inch  pipe.  The  line  extends  from  the  western  border  of 
Pennsylvania,  near  the  northern  border  of  Lawrence  County, 
where  It  receives  the  oil  from  the  Buckeye  Pipe  Line  Com- 
pany. 

The  line  from  that  point  extends  east  to  Bear  Creek,  Clarion 
County,  and  then  extends  northeast  to  Colegrove,  McKean 
County,  where  a  connection  is  made  with  the  eastern  branch 
of  the  National  Transit  Line,  and  all  oil  handled  by  that 
branch  of  the  Transit  Company  is  secured  from  the  Northern 
Pipe  Line.  From  this  point  the  line  then  extends  north  to 
Clean,  N.  Y.,  where  It  connects  with  the  New  York  Transit 
lines. 

The  company's  traffic  has  had  a  steady  growth  and  its 
permanency  is  practically  assured.    It  has  no  gathering  lines. 

The  financial  statement  of  this  company  for  1917  com- 
pared with  that  of  the  previous  year  is  as  follows: 

1917  1916  Increase 

Net   Profits    $629,963       $600,898  $29,065 

Dividends  *.       560,000        400,000  160,000 


Surplus  .    $69,963       $200,898  *$130,935 

*Decrease. 

Net  profits  were  equal  to  15.74  per  cent,  in  1917  on  the 
company's  $4,000,000  capital  stock,  compared  with  15.02  per 
cent,  in  1916  and  10,71  per  cent,  in  1915. 

The  Balance  Sheet  as  of  December  31,  1917,  compares  as 
follows : — 

Assets:  1917  1916  Change 

Pipe  Line  Plant   $2,957,862      $2,977,254    —  $19,392 

Materials  and   Supplies...  9,651  8,696    +  955 

Cash,     Other  Investments 

and  Accounts  Receivable      3,236,776       2,872,152    +  364,624 


Total  Assets 


$6,204,290      $5,858,102  -f$346,188 


Ohio  Oil  Company 


55 


Liabilities:  1917 

Capital   Stock    $4,000,000 


Accounts  Payable 
Reserve  for  Depreciation. 
Fire  Insurance  Reserve... 
Profit  and  Loss  


Total    Liabilities.  . 


411,322 
1,007,846 
13,473 
771,647 


1916 
$4,000,000 
206,886 
943,611 
5,921 
701,684 


Change 


+$204,436 
+  64,235 
+  7,552 
+  69,963 


$6,204,290      $5,858,102  -f$346,188 


The  company's  business  shows  a  steady  increase  and  as 
a  result,  it  was  able  to  increase  its  dividend  to  $14  a  share 
and  add  to  its  cash  assets.  The  Book  Value  of  the  stock 
increased  to  $119  a  share  of  which  $70.63  represents  net 
cash  assets. 

The  progress  of  the  company  since  the  dissolution  is  shown 
comparatively  as  follows: 

Plant  Depreci- 
Earnings       Kate       Account       ation  Surplus 

1917   $629,963        15.74%     *$19,392        $64,235  $771,647 

1916   600,898        15.02%        *4,032  69,733  701,684 

1915   428,433        10.71%        ......  80,831  500,786 

1914   421,981        10.55%      *14,501        243,567  472,352 

1913   707,205        17.68%      *32,084        269,703  450,371 

1912   434,822        10.87%    279,777  143,096 

*Decrease   after  depreciation. 


On    December    31,    1906,    the    company's    net    assets  were 
$4,005,513  against  net  assets  of  $4,771,647  on  Dec.  31,  1917. 
Traffic  over  these  lines  since  the  dissolution  has  been  as 


follows: 

Receipts  Deliveries 

(Barrels)  (Barrels) 

1918  (4  mos)                                    6,644,198  6,774,030 

1917                                               17,106,608  17,406,378 

1916                                               15,981,603  15,964,488 

1915                                               14,802,169  11,766,651 

1914                                               12,944,018  13,962,857 

1913                                               17,627,342  17,574,819 

1912                                               14,733,351  15,815,364 


Directors — D.  S.  Bushnell,  New  York;  D.  M.  Sachs,  L.  Z. 

Duncan,  F.  G.  Boyer,  all  of  Oil  City,  Pa.;  B.  A. 

Towl,  New  York. 
Officers — President — D.  S.  Bushnell,  26  Broadway,  N.  Y. 

V.-P.  &  Gen.  Mgr. — D.  M.  Sachs,  Oil  City,  Pa. 

Secretary — -George  Chesebro,  26  Broadway,  N.  T. 

Treasurer — W.  A.  Harris,  26  Broadway,  N.  Y. 
Transfer  Office — 26  Broadway,  New  York  City. 

Corporate  Office — Oil  City,  Penna.  Annual  Meeting,  Third 
Thursday  in  January, 


THE  OHIO  OIL  COMPANY 

The  Ohio  Oil  Company  was  incorporated  In  1887  under  the 
laws  of  Ohio.  It  Is  now  only  a  producer  and  marketer  of 
crude  oil,  having  divorced  its  extensive  transportation  system. 

Capital  Stociv — The  capital  stock  was  $2,000,000,  but  it 
was  increased  to  $10,000,000  and  then  to  $15,000,000,  the 
present  capitalization.    Par  value,  $25. 

On  January  31,  1917,  the  stockholders  voted  approval  of 
an  increase  in  capitalization  to  $60,000,000,  whereupon  the 
directors  voted  a  stock  dividend  of  $75  a  share  to  be  paid 


56 


Ohio  Oil  Company 


March  20,  1917,  to  stock  of  record  February  15.  The  com- 
pany's intention  was  to  exchange  one  share  of  $100  par  value 
for  each  of  the  outstanding  600,000  shares  of  $25  par  value, 
but  the  Attorney  General  of  Ohio  ruled  that  the  capital 
stock  of  an  Ohio  company  cannot  be  increased  by  raising  the 
par  value  of  shares.  The  company  issued  notice  to  thia 
effect  on  March  20,  1917,  adding-  that  "the  directors  have  not 
determined  what  further  action,  if  any,  will  be  taken  in  the 
matter." 


Dividends — Since  dissolution 
company  has  been  as  follows: 


191S- 

— Jun  20 

24% 

$3,600,000 

Mar  20 

24% 

3,600,000 

1917- 

—Dec  20 

24% 

3,600,000 

Sep  20 

24% 

3,600,000 

Jun  20 

24  7c 

3,601^,000 

Mar  20 

24% 

3,600,000 

1916- 

—Dec  20 

20% 

3,000,000 

Sep  20 

24% 

3,600.000 

Jun  20 

24% 

3,600,000 

Mar  2  4 

24% 

3,600,000 

1915- 

—Dec  20 

24% 

3,600,000 

Sep  20 

8% 

1,200,000 

Jun  21 

8% 

1,200,000 

Mar20 

10% 

1,500,000 

the   dividend  record   of  the 


1915- 

— Feb  .2 

133  1- 

■3%  Stk.D. 

1914- 

—Dec  19 

8% 

$1,200,000 

Sep  21 

5% 

750,000 

Jun  20 

8% 

1,200,000 
1,200,000 
4,800,000 

Mar20 

8% 

1913- 

—Dec  20 

32% 

Sep  20 

8% 

1,200,000 

Jun  20 

8% 

1,200,000 

Mar  20 

9% 

1,350,000 

1912- 

—Dec  20 

5  % 

750,000 

Sep  20 

5% 

750,000 

Jun  20 

5% 

750,000 

Mar20 

5% 

750,000 

Total  DivideTids  since  the  Dissolution   $58,800,000 

The  dividend  record  of  this  company  has  been  the  most 
remarkable  of  any  company  in  the  group.  In  the  six  years 
and  six  months  since  the  dissolution,  each  shareholder  has 
received  392  per  cent,  on  $25  par  value  or  $98,  and  in  addi- 
tion one-third  of  a  share  of  Illinois  Pipe  Line  Company  stock 
of  $100  par  value.  The  dividends  paid  nn  this  stock  since  1915 
aggregate  74  per  cent.,  so  that  the  fractional  share  of  pipe 
line  dividends  would  be  $24.66.  A  holder  of  one  share  of  Ohio 
Oil  Company  stock  at  the  time  of  the  dissolution  would 
have  received  up  to  this  time  cash  dividends  of  $122.66,  or  an 
average  of  $18.87  a  year. 

On  December  21,  1914,  the  stockholders  ratified  a  proposi-. 
tion  to  turn  over  the  company's  trunk  and  gathering  pipe  line 
systems,  with  the  equipment  belonging  thereto  in  Illinois, 
Indiana,  Ohio  and  Pennsylvania,  to  a  newlj  formed  corpora- 
tion, known  as  the  Illinois  Pipe  Line  Company,  and  receive 
in  return  that  company's  $20,000,000  capital  stock.  As  there 
were  200,000  shares,  $100  par  value,  of  pipe  line  stock  to  be 
distributed  among  600.000  shares,  $25  par  value,  of  Ohio  Oil 
Company  stock,  the  directors  declared  a  133  1-3  per  cent, 
dividend,  payable  on  and  after  February  1,  1915,  in  Illinois 
Pipe  Line  stock  to  Ohio  Oil  Company  stockholders  of  record 
January  2.  1915. 

Properties — The  company  controls  extensive  tracts  of  oil 
lands  in  Ohio,  Indiana,  Illinois,  Wyoming  and  Kansas.  It 
ranks  with  the  largest  individual  producers  of  crude  oil 
among  the  former  subsidiary  companies  of  Standard  Oil.  The 
company's  producing  wells  yield  three-fourths  of  the  produc- 
tion from  the  Illinois  and  Indiana  fields. 

The  company  has  taken  a  reading  part  in  the  development 
of  the  new  oil  fields  of  Wyoming  and  Montana,  which  experts 
declare  will  prove  the  country's  greatest  basin  of  high  grade 
oil.  Its  first  investment  was  in  the  Grass  Creek  Field,  north 
of  Thermopolis,  Wyo.,  where  it  now  has  about  6,000  barrels  of 


Ohio  Oil  Company 


57 


daily  production  and  is  transporting-  oil  through  the  Illinois 
Pipe  Line  Company's  lines  to  Chatham,  where  the  oil  is 
loaded  on  tank  cars  and  shipped  to  Casper,  Wyo.  Further 
north  the  company  purchased  during  1916,  an  extensive  tract 
in  the  Torchlight  Dome  from  the  Valentine  interests.  In  the 
Elk  Basin  district,  which  runs  north  and  south  of  the  Wyom- 
ing-Montana state  line,  the  company  has  extensive  holdings 
and  has  proven  up  the  territory  by  bringing  in  a  number  of 
wells,  two  of  which  are  in  Montana.  The  oil  from  this  sec- 
tion is  handled  by  the  Illinois  Pipe  Line,  which  has  a  pump- 
ing station  and  a  short  3-inch  line  to  Frannie,  Wyo. 

Late  in  1916,  the  company  purchased  for  $500,000  a  half 
interest  from  the  Merritt  Oil  Corporation  in  a  500  acre  tract 
in  the  heart  of  the  Big  Muddy  field,  eighteen  miles  east  of 
Casper,  Wyo.,  on  which  they  now  have  production.  The 
company  has  acquired  additional  acreage  in  the  Big 
Muddy  field,  which  is  regarded  as  one  of  the  most  pro- 
lific pools  of  high  grade  oil  developed  during-  1916.  The 
company  is  thoroughly  entrenched  in  every  developed  section 
of  the  Wyoming  fields.  In  October,  1916,  the  United  States 
Court  of  Appeals  rendered  a  decision  confirming  its  title  to 
6,000  acres  in  the  Grass  Creek  field,  Wyoming,  which  the 
Government  had  tried  to  seize  under  the  Land  Withdrawal  Act. 

Recently  the  company  has  made  a  contract  to  deliver 
1,000,000  barrels  of  its  Wyoming  production  to  the  new  refin- 
ery of  the  Imperial  Oil  Company  at  Regina,  B.  C. 

The  company  has  an  extensive'  field  organization  in 
Wyoming,  consisting  of  geologists,  engineers  and  drilling  ex- 
perts, and  is  pushing  active  development  Vv'ork  in  practically 
every  important  oil  district  in  the  state. 

In  September,  1916,  the  company  entered  the  new  Kansas 
fields  by  purchasing  the  Mid-Kansas  Oil  and  Gas  Company 
properties  in  the  Augusta  pool,  covering  7,000  acres  wath 
twenty  producing  wells. 

The  company's  balance  sheet  as  of  December  31,  1917, 
compares  with  the  previous  years  as  follows: 


Assets:                               1917  1916  Increase 

Property  Account                   $17,303,763  $16,922,132  $381,631 

Cash,  Accts.  Rec,  Mdse,  etc.    68,180,479  65,851,085  2,329,394 

Total  Assets                 $85,484,242  $82,773,218  $2,711,024 


Liabilities: 

Capital    Stock   $15,000,000  $15,000,000   

Accounts  Payable,  etc   4.533,493  926,297  $3,607,196 

Surplus    65,950.749  66,846,921  896,172 


Total    Liabilities          $85,484,242    $82,773,218  $2,711,024 


A  comparison  of  the  balance  sheets  indicates  net  earnings 
for  1917,  after  allowing  for  Federal  taxes,  of  $13,503,828, 
equivalent  to  90.02  per  cent.,  compared  with  net  earnings  in 
1916,  with  no  allowance  for  war  taxes,  of  $14,835,178,  equiv- 
alent to  98.9  per  sent.  Profit  and  loss  surplu.s"  decreased  $896,- 
172  after  payment  of  $14,400,000  in  dividend.'^.  The  Inilance 
sheet  does  not  disclose  the  amount  re.^erved  for  taxes,  but 
accounts  •«'»ayable,  including  tax  liability,  show  an  increase  of 
$3,607,196. 


58 


Penn-Mex.  Fuel  Company 


Reviewing-  the  operations 
solution  affords  the  following 


Indicated 

Earningrs 

Rate 

1917. . 

.  *i(;i3,503,828 

90.02% 

1916. 

.  14,835,1^8 

98.9% 

1915. 

.  16,621,920 

110.8% 

1914. 

9,720,354 

64.8% 

1913. . 

22,803,661 

152.0% 

1912. . 

of  the  company  since  the  dis- 
comparison : 

Additions  to 
Production 
Properties  After 
Dividends  Depreciation  Surplus 
,1514,400,000       $381,631  .'^65,950,749 
13,800,000         612,000  66,846,921 
7,500,000      1,166,650  t65,811,743 
$1,673,320 
1,461,384 


68,849,427 
63,479,073 
49,225,412 


4,350,000 
8,550,000 
3,000,000 

*After   War  Taxes. 

fAfter  disposing  of  its  pipe  line  properties  carried  at  $12,- 
159,604  to  the  Illinois  Pipe  Line  Company.  JDecrease, 
Otticers* — President — J.   C.  Donriei. 

Vice-President — J.  K.  Kerr  and  O.  D.  Donnell. 

Secretary — F.  E,  Hurley. 

Treasurer — J.   L.  Cook. 
Directors — J.  C.  Do  nnell,  O.  D.  Donnell,  R.  J.  Berry  and 
E.  Hurley  of  Findlay,  Ohio,  and  J.  K.  Kerr,  Marshall,  111. 
Transfer  Agent — W.   B.   Filson,  Findlay,  Ohio. 
Annual  Meeting: — Thursdaj^  following  fourth  Wednesday  in 
May. 


PENN-MEX.  FUEL  COMPANY 

Incorporated  in  Delaware  In  1912  with  a  capital  stock  of 
110,000,000.     Par  value,  $25.00. 

Fifty-one  per  cent,  of  the  stock  is  owned  by  the  South 
Fenn  Oil  Company,  one  of  the  leading  oil  producing-  companies 
of  the  world,  which  has  assumed  active  control  of  the  field 
operations. 

Properties — The  company  controls  nearly  300,000  acres  of 
leases  and  lands  held  in  fee  in  the  principal  producing  sec- 
tions in  the  State  of  Vera  Cruz,  Mexico,  which  are  rated 
among  the  best  in  that  country.  Its  principal  producing  area 
Is  in  the  Alamo  field,  which  lies  about  twelve  miles  south  and 
a  little  west  of  the  famous  Potrero  del  Llano  well  of  the 
Mexican  Eagle  Company.  This  tract  of  93,000  acres  stretches 
for  twenty-three  miles  along  the  south  bank  of  the  Tuxpain 
River. 

The  company  also  has  producing  wells  in  tbe  Pani]o<.  aim} 
Chijol  fields  in  th«^  not-tbern  ser-tion  of  thf  State  f\(iiHeerT  t^' 
the  Panuco  River 

Production — The  company  has  a  production  of  more  than 
11  0,000  barrels  daily,  all  under  control.  An  official  descrip- 
tion of  its  producing  properties  is  given  in  the  president's 
annual  report,   herewith  appended. 

Pipe  Lines — The  company  has  built  twenty-eight  miles  of 
eight-inch  lines,  which  in  paralleled  by  a  six-inch  water  line 
and  three  pumping  stations.  These  stations  known  as  the 
initial,  interdmediate  and  termin.'il,  are  about  sixteen  miles 
apart.  The  engines  pump  under  800  to  900  pounds  pressure 
and  as  the  oil  is  heavy,  two  Nati  Tial  Transit  California  type 
oil  heaters  are  included  in  the  e  luipment.  These  are  oper- 
ated by  the  , exhaust  steam  from  the  big  pumping  engines. 
The  pipe  line  extends  from  the  Aiamo  field  to  Tuxpam  Bar, 
where  the  company  has  an  exteniiive  storage  plant  and  .'sea- 
loading  terminals.  These  sea-loading  facilities,  which  have 
a  delivery  capacity  of  1,800  to  2,500  barrels  per  hour,  can 
load  four  tankers  at  one  time.  O  ving  to  quick  tide  changes 
it  is  necessary  to  load  with  great  rapidity.    The  present  nor- 


Penn-Mex.  Fuel  Company 


59 


mal  capacity  of  the  pipe  line  is  40,000  barrels  per  day,  which 
can  be  raised  to  60,000  barrels  rinder  pressure.  The  entire 
pipe  line  and  pumping  station  sjvBtem  was  installed  by  the 
National  Transit  Company  and  is  thoroughly  up-to-date. 
The  machinery  and  pumping  equ  pment  connected  with  the 
pipe  line  system  represents  an  investment  of  more  than 
$1,000,000.  The  company  also  hai  fourteen  miles  of  narrow 
gauge  railroad  from  Zapotal,  at  ^iie  head  of  navigf  tion  oi 
the  Tuxpam  River  to  the  Alamo  i'elds.  There  is  a  i  iachine 
shop  and  storage  station  at  Zapot?,l. 

Traffic — The  company's  production  and  shipments  for  the 
last  three  years  as  follows: 

Production       Shipments  Tankage 

1917   3,963,636         3,815,078  850,000 

*1916   3,493,276         3,353,489  644,435 

1915  3,666,405  3,073,176   

*Figures  for  1916  are  for  eleven  months,   as  no  oil  was 
produced  or  shipped  during  July,  1916,  because  of  the 
forced  exodus  of  Americans  from  Mexico. 
The   company's   financial   statement   for   year   1917,    is  as 


follows: 
Income : — 

Oil  Earnings,  Gross   $1,664,610.50 

Less  Royalty  Oil  Purchased.   67,770.19 


Ji;i,596,840.31 

Gasolene   Earnings    3,761.94 

Interest  Earnings    3,899.63 

Miscellaneous  Earnings    2,250.51 


Total   Gross  Income   .$1,606,752.39 

Deduct : — 

General  and  Operating  Expenses   $557,433.13 

Exportation   Taxes    285,213.59 

Interest  on   Indebtedness   127,741.66 

Depreciation   247,306.11 


$1,217,696.49 


Net  Loss  through  P.  and  L.  Susp   158,996.99 


$1,376,693.48 

Net   Income,   Year   1917...   230,058.91 

Add: — 

Surplus  December  31,   1916   330,589.12 


Net  Surplus  December  31,  1917   $560,648.03 


The  Balance  Sheet  of  the  company  as  of  December  31, 
1917,  follows: — 


Assets 

Properties : — 

Oil  Wells  and  Development   1,133,004.76 

Pipe  Lines  and  Storage  System..  1,518,125.28 

Railroad,  Launches  &  Telephones  147,4  41.92 

Machine  Shop  and  Saw  Mill   40,688.06 

Terminal  Lldgs.,  Wharf,  etc....  51,844.62 

Camp  Bldgs.   and  Equipment...  44,153.26 

Horses,  Wagons  and  Automobiles  15,518.69 

Gasolene  Plant    11,303.09 

Farm  and  Garden  Implements...  4,437.14 


$12,170,695.77 

Less  Reserve  for  Depreciation .  .  .  650,533.86 

 $11,520,161.91 


60 


Penn-Mex.  Fuel  Company 


Stock  Owned  and  Advances: — 

Penn  Fuel  Company  stock  

Adv.  to  Penn  Fuel  L.  &  T.  Co.  .  . 


5,000.00 
30,293.80 


35,293.80 


Current  Assets: — 

Cash  

Accounts  Receivable  . 
Crude  Oil  in  Tft-nks... 
Material   and  Supplies 


$84,467.22 
404,661.84 
255,533.52 
322,003.40 


1,066,665.98 


Total  Assets 


$12,622,121.69 


I^ia  bill  ties 


Capital  Stock   . 

Notes  Payable  (South  Penn  Oil  Company) 

Accounts  Payable   

Surplus   (Invested  in  Plant)  


$10,000,000.00 
2,000,000.00 
61,473.66 
560,648.03 


Total  Liabilities 


$12,622,121.69 


The  president,  Joseph  C.  Trees,  in  a  lengthj^  statement  to 
the  shareholders,  said: 

"In  submitting-  a  report  of  the  affairs  of  your  company 
during-  the  year  1917,  we  regret  to  say  that  results  from  the 
point  of  earning-s  have  not  been  up  to  what  we  hoped  for. 
This  is  due  to  the  very  abnormal  condition  that  exists  in  the 
shipping-  situation,  the  labor  situation  and  the  revolutionary 
condition  generally  in  Mexico. 

"However,  results  from  development  work  have  been  very 
satisfactory,  the  following-  being  the  important  results: 

"The  first  well  completed  during  the  year  was  Alamo  No. 
6,  which,  on  a  second  test,  showed  a  production  of  about 
4,500  barrels,  of  which  about  25  per  cent,  was  sediment. 

"Along-  the  latter  part  of  August,  Alamo  No.  2  Ijegan  to 
emit  shale  which  gradually  increased  until  the  29th,  when 
she  bridged  completely,  thus  shutting  off  production.  A  new 
wood  rig-  was  erected,  and  on  October  2  9th,  the  tools  were 
run  in  and  the  bridge  successfully  broken.  Since  that  time 
the  production  from  No.  2  has  reached  22,000  barrels  daily, 
with  the  g-ate  valve  open  one  and  one-quarter  turn. 

"When  Alamo  No.  2  ceased  producing  Alamo  No.  7  was 
located  200  feet  from  No.  2  and  drilling  rushed  with  all  pos- 
sible speed  to  December  3,  Avhen  drilling  was  stopped  at  a 
depth  of  2,147  feet,  or  10  feet  less  than  No.  2.  A  few  days 
later  a  test  of  the  output  was  made  and  it  showed  11,170 
barrels  during  24  hours,  without  affecting  in  the  slig-htest 
degrees  the  pressure  guage  or  production  of  No.  2  which,  at 
this  time,   was   21,000  barrels. 

"Perez  No.  1,  in  the  Panuco  District,  was  completed  and 
tw^o  g-uages  of  its  production  was  taken,  the  first  showing 
about  45,000  barrels  and  the  second  about  43,000  barrels 
daily. 

"Moline  No.  2  was  drilled  to  a  depth  of  about  2,700  feet, 
or  about  350  feet  below  where  a  geologist  said  production 
should  be  encountered,  and  the  well  came  in  showing  a  pro- 
duction conservatively  estimated  at  40,000  to  45,000  barrels 
daily. 

"This  production  of  more  than  110,000  barrels  per  day 
is  all  under  perfect  control. 

"No  additional  acreage  was  acquired  during  the  year  for 
the  reason  that  the  promulgation  of  the  new  constitution  in 
Mexico,  and  the  many  decrees  emanating  therefrom,  made  it 
extremely  hazardous  to  attempt  the  transfer  of  titles. 


Pierce  Oil  Corporation 


Gl 


"Exportation  taxes  jumped  from  .044c  per  barrel  in  Jan- 
uary, 1917,  to  .103c  per  barrel  in  December,  1917. 

"A  note  of  $250,000  was  paid  during  the  year,  thus  re- 
ducing the  debt  that  amount. 

"The  year's  shipments  amounted  to  3,815,078  barrels,  with 
a  gradual  falling  off  toward  the  last  of  the  year  due  to  the 
great  number  of  tank  ships  being  engaged  in  Govfrnment 
work. 

"Your  production  is  all  shut  in  with  the  exception  of 
Alamo  No.  2,  which  was  curtailed  to  about  7,000  barrels  per 
day  during  December,  but  later  opened  to  about  10,000  bar- 
rels, or  just  enough  to  keep  your  stocks  up  to  850,000  bar- 
rels." 

Officers — J.  C.  Trees,  President. 

L.  W.  Young,  Jr.,  Vice-President. 
E.  E.  Crocker,  Vice-President. 
H.   C.   Reeser,  Secretary. 
P.  J.  Huffman,  Treasurer. 
H.  M.  Krimbill,  Assistant  Treasurer. 
Levi  Smith,  General  Manager. 
Directors — M.  L.  Benedum,  G.  W.  Crawford,  E.  E.  Crocker, 
R.  W.  Cummins,  J.  G.  Gray,  F.  J.  Huffman,  J.  C.  McKinney, 
J.  C.  Trees,  L.  W.  Young,  Jr. 

Transfer  Office^ — Farmers'  Deposit  National  Bank  Bldg., 
Pittsburgh,  Pa. 


PIERCE  OIL  CORPORATION 

Incorporated  in  Virginia  in  June,  1913,  to  take  over  the 
assets  and  business  of  the  Waters  Pierce  Oil  Company  (estab- 
lished in  St.  Louis,  Missouri,  in  1855)  and  the  Pierce  Fordye© 
Oil  Association  (established  in  1910  to  take  over  the  busines.* 
in  Texas  of  the  Waters  Pierce  Oil  Company). 

Capitalization —                   Authorized  Outstandinji:  I'ar 

Common  Stock                        .  $33,000,000  $17,485,750  $25 

10-Year  Gold  Debenture,   6c.     10,000,000  9,523,000 

5-Year-6%  Conv.  Gold  Notes      2,000,000  2,000,000 

Interest  January  and  June,  payable  at  Ladenburg,  Thal- 
mann  &  Company,  New  York. 

Stockholders  met  December  ?3,  191"),  and  ratified  an  in- 
crease of  the  capital  stock  from  $30,000,000  to  $33,000,000  and 
authorized  a  further  issue  of  $2,000,000  five-year-  six  per 
cent,  gold  notes,  convertible  into  common  stock  at  20  at  the 
option  of  the  holder  and  redeemable  at  par  after  eighteen 
months.  The  notes  were  underwritten  by  Hayden,  Stone  & 
Company  and  Ladenburg,  Thalmann  &  Company, 

At  the  time  of  incorporation  provision  was  made  for  $15. 
000,000  preferred  and  $15,000,000  common,  each  $100  par 
$10,500,000  of  common  was  issued  and  the  preferred  stock 
was  trusteed  as  security  for  an  issue  of  $8,000,000  ©sie  year 
six  per  cent,  gold  notes.  From  the  proceeds  of  the  sale  of 
these  notes,  tho  $400,000  capita]  stock  of  the  Waters  Pierce 
Oil  Company  was  acquired  on  a  basis  of  $1,250  In  cash  and 
$2625  of  new  stock  for  each  share  of  Waters  Pierce  stock 
fractional  shares  being  taken  up  pro  rata. 

On  June  25,  1914,  the  stockholders  voted  to  make  the 
capitalization  $30,000,000  all  common  stock  of  a  par  value 
of  $25,  and  authorized  an  issue  of  $10,000,000  ten  year,  six 
per  cent,  convertible  gold  debentures. 

Of  the  new  stock,  $10,500,000  was  exchanged  for  the  out- 
standing common  stock;  $10,000,000  is  reserved  for  issue 
under  the  debenture  agreement;   $3,100,000  of  stock  was  set 


62 


Pierce  Oil  Corporation 


aside  to  sell  for  cash  for  capital  expenditures  in  the  exten- 
sion of  the  company's  business  and  $6,400,000  was  reserved  to 
acquire  new  properties  or  shares  in  any  corporation  or  associ- 
ation, which  means  the  Pierce  Fordyce  Oil  Association,  when 
permission  to  do  "SO  is  obtained  from  the  State  of  Texai. 
Meanwhile  as  the  corporation  holds  90  per  cent,  of  outstand- 
ing Pi«rce  Fordyce  certificates,  it  controls  the  business  of 
that  company  and  has  deposited  the  certificates  as  additional 
security  for  its  $10,000,000  gold  notep. 

The  sale  of  the  new  $10,000,000  debenture  issue  provided 
funds  for  the  retirement  of  the  $8,000,000  gold  notes  and 
cleared  the  way  for  the  cancellation  of  the  company's  pre- 
ferred stock. 

In  December,  1917,  the  company  obtained  a  license  to 
transact  business  in  the  State  of  Texas,  and  on  December  31, 
1917,  acquired  by  purchase  32,378  shares  of  a  total  of  36,023 
shares  of  Beneficial  Interest  of  the  Pierce-Fordyce  Oil  Asso- 
ciation, the  remaining  3,645  shares  having  since  been  prac- 
tically acquired. 

Business — The  corporation  constitutes  a  complete  cycle  in 
the  oil  industry,  being  engaged  in  the  producing,  transport- 
ing, refining  and  marketing  of  petroleum  products.  Its  posi- 
tion is  strongly  entrenched  as  previous  to  the  dissolution,  It 
controlled  the  marketing  business  of  the  Standard  Oil  Com- 
pany in  the  Southwestern  States  and  Mexico,  where  it  was 
engaged  in  the  oil  business  many  years  before  any  other 
oil  companies  entered  the  Mexican  field. 

Producing:  Properties — One  hundred  and  twenty-nine  thou- 
sand acres  of  oil  lands  in  Oklahoma,  Arkansas  and  Mexico, 
owned  in  fee  or  lease  and  estimated  to  contain  sufllcient  oil 
to  supply  the  requirements  of  the  refineries  for  more  than 
twenty-five  years.  Included  in  these  holdings  are  leases  in 
the  Gushing  and  Morris  Fields  in  Oklahoma,  adjacent  to  the 
company's  newest  refinery  and  10,000  acres  in  the  Panuco 
field,  adjacent  to  the  company's  refinery  at  Tampico,  Mexico. 

Transportation  Properties — The  company  operates  its  own 
pipe  lines  from  its  producing  properties  to  its  refinery  In 
Oklahoma  and  has  pipe  line  connections  between  Its  produc- 
ing field  in  Mexico  and  the  Panuco  River,  whence  it  barge* 
its  oil  to  the  Tampico  refinery.  The  company  also  has  three 
tank  steamships,  numerous  oil  barges  and  tugs,  and  also 
owns  and  operates  1,3S9  tank  cars. 

The  company  expended  approximately  $2,000,000  on  the 
construction  of  100  miles  of  eight-inch  pipe  line  from  the 
Healdton  field  to  its  Fort  "Worth  refinery. 

Refinery  Properties — Five  refineries  of  modern  construction 
located  at  Forth  Worth  and  Texas  City,  Texas;  Sands  Springs, 
Oklahoma;  Tampico  and  Vera  Cruz,  Mexico.  The  combined 
daily  charging  capacity  of  these  refineries  is  26,500  barrels  of 
crude  oil. 

The  company  has  a  long  time  contract  with  the  Mag- 
nolia Pipe  Line  to  supply  crude  oil  to  its  Texas  refineries, 
while  its  Sands  Springs  refinery  is  connected  directly  with 
Ciishing  production  through  the  company's  own  pipe  line. 

Marketing  Properties — The  combined  companies  have 
1,122  main  distributing  stations,  through  which  they  dis- 
tribute their  product  in  rnore  than  17,000  cities  and  towns. 
Nearly  all  of  the  distributing  stations  are  on  freehold  prop- 
erty owned  by  the  corporation  and  comprise  brick,  stone 
and  iron  built  warehouses  and  offices.  The  company  markets 
gasolene,  naphthas,  lubricating  oils,  greases,  wax,  cotton 
seed  oil,  linseed  oil,  turpentine,  soap,  oil  lamps,  stoves  and  all 
appliances  and  accessories  for  the  use  of  petroleum. 


Pierce  Oil  Corporation 


63 


Earnings — Combined  Comparative  Income  Account  of 
Pierce    Oil    Corporation    and    Pierce-Fordyce    Oil  Association 


for  years  ending  December  31,  1917  and  1916: 

Trading    Profits    (sales,    less  producing 

and  market  expenses;  :  1917  1916 

United  States    $3,197,721  ^2,960,888 

Mexico    757,050  676,621 


Ji;3,954,771  $3,637,509 

Other  Income: 

Interest  Earned  Etc                                  $128,557  $125,750 

Flood  Loss  Reserve  Restored   25,715   


Total  Income                                        $4,109,043  $3,763,2^» 

Deduct — Income  Charges: 

Interest  on  Floating  Indebtedness...      $280,469  $146,742 

Bad  Debts                                                      109,308  95,^S9 

Other  Income  Charges                                262,655  191,711 


$652,432  $433,542 


Net  Operating  Income   $3,456,611  $3,329,717 

Deduct — Profit  and  Loss  Charges: 

Interest  on  Debentures  &  Gold  Notes  $717,968  $733,103 
Depreciation  of  Capital  and  Working 
Assets,  Including  Depletion  of  Oil 

Leases  :              933,445  91,304 

Estimated  Federal  Taxes   180,000  54,234 

Federal  Taxes  of  Previous  Years,  Ad- 
justed in  1917   15,709   


$1,847,122  $878,641 


Net  Surplus  for  the  Year   $1,609,489  $2,451,076 

Consolidated  Balance  Sheet  for  1917  compares  with  that 
of  the  previous  year  as  follows: 

Assets 

Current  and  Working  Assets:                         1917*  1916t 

Cash  in  Banks  and  on  Hand   $869,526  $1,877,487 

Notes  and  Accounts  Receivable....  2,639,767  2,541,307 
Inventories     of     Merchandise,  Ma- 
terials and  Supplies   5,265,825  3,519,341 

Tank  Steamers  and  Barges   1,790,476  1,790,200 

Tank  Cars   1,991,022  444,207 

Stable  and  Garage  Equipment                  273,455  181,118 

Iron  Barrels  and  Drums                           409,238  250,022 

Drilling  Tools  and  Equipment                    61,104  16,436 

Interest,   Insurance,    etc..   Prepaid..       394,003  254,835 

Miscellaneous   Investments    38,109   


$13,732,525  $10,874,953 

Capital  Assets: 

Oil  Lands,  Leaseholds  and  Devel- 
opment, Pipe  Lines,  etc.,  (includ. 
the  capital  stock  and  advances 
to  Mexican  Fuel  Co.  and  Mid- 
west Prod.  Co.).  $22,438,370  $20,389,630 

Real  Estate  Occupied  by  Refineries 

and  Distributing  Stations   2,678,895  2,012,019 

Buildings,  Plant  and  Equipment...     7,903,873  4,604,116 


$33,021,138  $27,005,765 


Total  Assets 


$46,753,664  $37,880,718 


C.  H.  PFORZHEIMER  &  CO.,  21 

Oealers  in  Standard  Oil  Securities 

RANGE  OF  STANDARD  OIL  ST" 


Capital 

Par 

High 

Low 

1  High  Low 

£1,000,000 

£1 

20 

6% 

16 

2,000,000 

1 

3,000,000 

1 





Ji;5,ooo,ooo 

$100 

78.-) 

245 

810 

560 

Borne  Scrvmser   

200,000 

100 

300 

110 

365 

220 

Buckeye  Pipe  Line'  Co... 

10,000,000 

50 

202 

64 

177 

150 

Cheseb'gh  Mfs".  Co.  (new) 

1,500,000 

100 

Chesebrough    I\lfg'.    Co. .  .  . 

500,000 

100 

900 

550 

705 

645 

250,000! 

100 

195 

100 

145 

90 

Continental   Oil    (Iowa)  .  . 

300,000 

100 

1850 

600 

2700 

1690 

Continental  Oil  (Colo.)... 

3,000,000 

100 

230 

180 

Crescent  Pipe  Line  Co... 

3,000,000 

50 

90 

25 

70 

52 

Cumberland.  Pipe  Line  Co. 

1,488,851 

100 

115 

60 

98 

58 

Eureka  Pipe  Line  Co.... 

5,000,000 

100 

460 

120 

395 

335 

Galena  Signal  (Common) 

8,000,000 

100 

308 

190 

312 

285 

12,000,000 

100 

210 

165 

Galena  Signal  (Preferred) 

2,000,000 

100 

150 

125 

147 

130 

Indiana  Pipe  Line  Co.... 

5,000,000 

50 

165 

60 

163 

112 

20,000,000 

100 

Intern'l  Petroleum  Co.... 

£20,000,000 

£1 





™ 

National  Transit  Co  

.i;i2,727,572 

iP25 

57 

22 

35 

National  Transit  Co  

6,362,500 

12.50 



New  York  Transit  Co.... 

5,000,000 

100 

405 

115 

370 

308 

Northern  Pipe  Line  Co... 

4,000,000 

100 

190 

75 

127 

90 

Ohio  Oil  Co  

15,000,000 

25 

142 

65 

149 

120 

Penn-Mex  Fuel  Co  

10,000,000 

25 



Pierce  Oil  Corporation... 

10,500,000 

100 





70 

30 

Pierce  Oil  Corp,  (new)  .  .  . 

13i857,500 

25 



 . 

Prairie  Oil  &  Gas  

18,000,000 

100 

350 

180 

447 

275 

Prairie  Oil  &  Gas  (new)  . 

18,000,000 

100 

Prairie  Pipe  Line  

27,000,000 

100 





500,000 

100 

^50 

398 

760 

600 

Solar  Refining  Co.  (new)  . 

2,000,000 

100 

350 

175 

Southern  Pipe  Line  Co... 

10,000,000 

100 

315 

120 

280 

230 

South  Penn  Oil  Co  

2,500,000 

100 

925 

360 

1025 

880 

South  Penn  Oil  Co  

12,500,000 

100 

287 

188 

South  Penn  Oil  Co.  (new) 

20,000,000 

100 





S.  W.  Penn  Pipe  Lines... 

3,500,000 

100 

240 

95 

175 

144 

Standard   Oil — California. 

25,000,000 

100 

227 

110 

Standard   Oil — California. 

50,000,000 

100 

200 

130 

273 

163 

Standard   Oil — California. 

74,529,983 

100 

Standard  Oil — Cal.  (new) 

99,373,311 

100 





Standard    Oil — Indiana... 

30,000,000 

100 

375 

200 

423 

308 

Standard   Oil — Kansas.  ..  . 

1,000,000 

100 

630 

130 

610 

445 

2,000,000 

100 

500 

266 

Standard  Oil — Kentucky.. 

1,000,000 

100 

950 

150 

698 

310 

Standard  Oil — Kentucky.. 

3,000,000 

100 

Standard  Oil — Ky.  (new)  . 

6,000,000 

100 





Standard   Oil — Nebraska.. 

800,000 

100 

390 

170 

375 

298 

Standard   Oil — Nebraska.  . 

1,000,000 

100 

500 

260 

Standard  Oil — New  Jersey 

98,338,382 

100 

435 

350 

448 

328 

Standard  Oil — New  York. 

15,000,000 

100 

695 

267 

705 

575 

Standard  Oil — New  York. 

75,000.000 

100 

183 

136 

Standard   Oil — Ohio  

3,500,000 

100 

355 

140 

400 

257 

Standard   Oil — Ohio  

7,000.000 

100 

500,000 

100 

300 

175 

330 

175 

Union  Tank  Line  Co  

12  000  000 

100 

102 

45 

94 

60 

A'acuum  Oil  Co  

15,000,000 

100 

202 

140 

199 

170 

AVasb.ington    Oil  Co  

100.000 

10 

40 

8 

52 

20 

The  ample  facilities  of  our  office  are  at  your  dispos^h 
Oil  Issues  and  we  feel  confident  our  services  will  i 


ii BROAD  STREET,  NEW  YORK 

•  Telephones  4S60- 1-2-3-4  Broad 

:KS  in  new  YORK  MARKET 


1914-       I        1915        1        191G        I        1917        |  1918 
High  JLow  I  High  Low  |  High  L,o\y  |  High  Low  |  High  Low 


I  I'TO 
I  3G7 
I  — 


540 
710 
300 


265 
665 
198' 


140 


103     I  130  102 


18% 

9 

19% 

13% 
— 

18 

14% 

21 

15^2 

141/4 

11%  1 

808 

400 

700 

530 

1010 

620 

1150 

775 

970 

890 

375 

250 

295 

250 

530 

275 

460 

400 

475 

435  i 

184 

95 

125 

98 

125 

85 

123 

101 

91  1 

500 

302 

450 

300 

333 

300  1 

695 

620 

750 

650' 

1025 

725, 

145 

80 

180 

90 

180 

160 



275 

175 

282 

220 

590 

270 

660 

400 

510 

425 

70 

35 

53 

36 

48 

39 

45 

30 

38 

29 

40 

70 

41 

155 

45 

165 

120 

160 

120 

355 

195 

295 

215 

260 

200 

243 

190 

216' 

180 

197 

145 

173 

144 

206 

148 

190 

119 

148 

130 

152 

135 

145 

134 

147 

134 

145 

120 

125 

120 

155 

80 

117 

93 

117 

87 

116 

80 

103 

92 

165 

120 

210 

118 

255 

250 

125 

196 

178 

141/2 

5 

131/2 

10 

15% 

101/4 

141/2 

121/2 

49 

27 

38 

28  ' 

35 

30 

20 

14 

21 

12 

14 

121^ 

335 

195 

242 

220 

235 

170 

240 

175 

220 

180 

133 

68 

116 

88 

122 

92 

110 

94 

115 

95 

201 

140 

188 

122 

398 

190 

435 

280 

365 

298 

71 

52 

72 

54 

61 

33 

47 

391/2 

117 

40 

21 

10 

19 

9 

10% 

351/4 

81/4 

111/2 

8% 

615 

290 

462 

210 

655 

360 

700 

385 

502 

407 

255 

125 

358 

205 

345 

220 

280 

242 

400 

220 

- 

325 

216 

415 

270 

420 

270 

315 

290 

262 

170 

243 

200 

230 

187 

220 

175 

195 

170 

425 

200 

390 

253 

625 

308 

609 

530 

349 

240 

300 

260 

397 

270 

387 

202 

382 

345 

560 

393 

895 

490 

488  330 


565  430 


505 

280 

365 

305 

436 

315 

568 

385 

257 

- 

160 

238 

178 

500 

370 

560 

413 

335 

140 

175 

105 

109 

65 

92 

78 

258 

140 

242 

179 

77 

30 

54 

30 

365 


810  335 


715 


335 
494 


445  355 
307  202 
945  570 


640 


800 
385 


700 
280 


650 
803 


450 
475 


285 

199 

345 

220 

286 

245 

630 

535 

463 

311 

540 

385 

435 

375 

155 

96 

.135 

90 

100 

93 

103 

79 

115 

79 

104 

82 

400 

215 

490 

315 

373 

325 

5." 

,'>5 

40 

31 

26 

248 
700 


210 

583 


300 


510 
577 


470 
510 


?ip  tuy,  sell  or  obtain  the  best  markets  on  Standard 
t  not  only  satisfactory  but  superior  to  any  other. 


66 


Pierce  Oil  Corporation 


Liiabilities 

Current   Liabilities:  1917  1916 
Notes    Payable,    Secured    and  Un- 
secured   $3,741,412  $1,S82,238 

Accts,  Payable  and  Accrued  Liab .  .  2,612,402  2,390,474 

Estimated   Federal   Taxes   180,000   

Steamship   Obligations    630,418  


$6,164,232  $3,772,702 

Funded  Debt: 

6%  Convertible  Sinking  Fund  De- 
bentures   Payable    at    105%  of 

Acc.  Value  July  1,  1914                   $9,523,000  $9,765,000 

6%   FiveYear  Convertible  Gold  Notes, 

Due  Dec.   31.   1920                              2,000,000  2,000,000 

Car  Purchase  Obligations  Deferred.       975,871  925,091 

Pipe  Line  Construction  Loan   1,000,000   

Purchase  of  Oil  Lands  and  Lease- 
holds  57,609 


$13,498,871  $12,747,700 

Capital  Stock: 

Authorized— 1,  320,000  Shares  of  $25 

Each                                                 $33,000,000  $33,000,000 

Less : 

Held  for  Conversion  of — 

10-Year  6%  Debentures                     10,000,000  10,000,000 

5-Year  G%  Convert.  Gold  Notes.     2,500,000  2,500,000 

Unissued                                                    3,014,250  6,642,500 

$15,514,250  $19,142,500 

$17,485,750  $13,857,500 

Cc^pital  Stock  of  Subsidiary  Company 
Outstanding: 
3,645    Shares    of   Beneficial  Interest 
of    Pierce-Fordyce    Oil  Assoc'n, 
which   have   option   of  Redemp- 
tion  at   106   in   Notes   and  Cash 

or  Capital  Stock  of  a  Par  Val.  of  911,250   

Surplus : 

Capital  Surplus    5,848,197  5,702,313 

Profit  and  Loss  Account  Surplus...     2,845,363  1,800,502 

$8,693,560  $7,502,815 

Contingent  Liabilities: 

Litigation    Pending    $50,000   

Total  Liabilities   $46,753,664  $3^,880,718 

*Consolidated  balance  sheet  of  Pierce  Oil  Corporation  and 

subsidiary  companies. 
tBalance  sheet  of  the  Pierce  Oil  Corporation. 

Remarks — The  company's  financial  report  for  1917,  which 
includes  earnings  of  the  Pierce-Fordyce  Oil  Association,  in- 
dicates improvements  in  Trading  Profit  over  the  previous  year. 

The  reports  for  1917  show  that  during  the  year  the  com- 
panies, considered  as  a  system,  earned  $3,450,611,37  available 
for  the  payment  of  interest  charges.  Interest  payments 
amounted  to  $717,967.68,  so  that  the  income  available  for 
that  purpose  was  more  than  480  per  cent,  the  amount  required. 
During  the  year  liberal  charges  were  made  against  income 


Pierce  Oil  CorQoration 


67 


for  depreciation,  bad  debts,  fire  losses  and  miscellaneous  ex- 
penses. There  was  charged  off  to  depreciation  of  capital  and 
working-  assets,  including  depletion  of  oil  leases  $933,444.98 
during  the  current  year,  compared  with  $91,303.97  during  1916. 
This  large  deduction  decreased  the  net  surplus  for  the  year 
to  $1,609,489.68,  a  falling  off  from  that  of  the  previous  year 
of  $841,586.19. 

The  operations  In  Mexico  during  the  year  are  reported 
to  show  a  profit  in  Mexican  currency,  but  owing  to  the  de- 
cline in  the  exchange  market  to  have  resulted  in  a  loss  of 
$54,683.01,  which  also  was  charged  against  the  income  of  the 
year.  It  is  stated  that  in  normal  conditions  the  business  in 
Mexico  is  very  profitable.  The  properties  located  in  Mexico 
have  been  well  protected  and  the  organization  maintained 
during  the  trying  conditions  of  the  last  twelve  months. 

As  of  December  31,  1917,  the  companies,  together  had 
current  and  working  assets,  amounting  to  $13,732,525.32, 
whereas  their  current  liabilities  aggregated  oniy  $6,164,232  54. 
The  cash  on  hand  at  the  end  of  the  year  amounted  to  $SG9,- 
525.68.  In  the  current  and  working  assets  the  receivables 
and  other  items  subject  to  fluctuations  in  Mexican  exchange 
have  been  written  down  to  the  nominal  value  of  $1.00.  This 
writing  down  at  December  31,  1915,  made  necessary  an  ad- 
justment of  the  accounts  amounting  to  $921,711.85  in  United 
States  currency.  That  amount  was  charged  to  capital  sur- 
plus, to  which  account  the  final  value  of  the  items  will  be 
credited.  Net  earnings  for  the  year  after  deduction  of  war 
taxes  amounted  to  $2.30  a  share. 

Property  additions  during  1917  are  summa.rized  as  follows: 
The  properties  acquired  through  the  purchase  of  the  Pierce- 
Fordyce  Oil  Associa  tion  include  land  and  recently  constructed 
refineries  a*t  Fort  Worth  and  Texas  City,  Texas,  and  an  eight- 
inch  pipe  line  from  the  Healdton  field  in  Oklahoma  to  the 
Fort  Worth  refinery  (about  100  miles)  completed  in  December, 
1917,  at  a  cost  of  approximately  $2,000,000.  At  the  Sands 
Spring,  Oklahoma,  refinery  the  capacity  was  increased  about 
30  per  cent,  by  various  additions.  A  continuous  plant  for  the 
treatment  of  gasolene  by  an  improved  method  was  also  in- 
stalled. A  lubricating  oil  and  wax  plant  with  a  capacity 
sufficient  for  the  corporation's  trade  in  the  United  States  was 
complete  in  December,  1917.  At  the  Tampico  Refinery,  two 
additional  55,000-barrel  storage  tanks  were  erected  and  the 
gasolene  finishing  plant  started  in  1916  was  completed.  The 
Fort  Worth  refinery  had  its  capacity  doubled  and  a  contin- 
uous gasolene  treating  plant  was  installed.  At  the  Texas 
City  Refinery  new  installations  increased  the  refined  oil, 
gasolene,  lubricating  oil  and  paraffin  wax  capacity,  about  20 
per  cent.  There  also  were  purchased  481  steel  tank  cars, 
74  auto  trucks  and  autos  and  the  motorship  '  Salarina." 

Notwithstanding  the  continued  unsettled  political  condi- 
tions in  Mexico,  the  corporation's  organization  throughout  the 
Republic  was  maintained,  and  no  property  losses  of  any  con- 
sequence occurred.  During  the  year  business  improved  both 
in  volume  and  profits.  All  sales  were  made  on  a  cash  gold 
and  silver  basis.  The  railways  being  unable  to  handle  all 
rail  shipments  from  the  Tampico  refinery,  the  company  leased 
two  locomotives  and  46  box  cars  and  purchased  12  additional 
box  cars,  all  of  w^hich,  together  with  the  tank  car  equipment 
in  Mexico,  meet  all  the  present  requirements. 

Directors — Henry  Clay  Pierce,  Clay  Arthur  Pierce,  Eben 
Richards,  C.  W.  Cahoon,  Charles  Hayden,  Wal- 
ter T.  Rosen,  Frederick  Lewisohn,  Willet  L.  Wag- 
ner, John  L.  Gray, 


Prairie  Oil  &  Gas  Company 


Officers — Henry    Clay   Pierce,  President. 

Clay  Arthur  Pierce,  Vice-President. 

Eben  Richards,  Vice-President. 

C.   W.   Cahoon,  Vice-President. 

James  H.  Brookmire,  Treasurer. 

Frederick  G.  Colley,  Secretary  and  Comptroller. 
Finance  Committee — Henry  Clay  Pierce,  Chairman;  Eben 
Richards,  Charles  Hayden,  Walter  T.  Rosen. 

0]>eraling:  Committee — Clay  Arthur  Pierce,  Eben  Richards, 
C.  \V.  Cahoon,  James  H.  Brookmire,  John  L.  Gray,  Frederick 

G.  Colley,  Samuel  L.  Kamps. 

Counsel — Boyle  &  Priest,  Missouri;  Van  Vorst,  Marshall 
and  Smith,  New  York;  E.  B.  Perkins,  Texas;  A.  Shanklin, 
Mexico. 

Trustees,  Ten-Year  Debentures — Albert  T.   Wiggin,  Clias. 

H.  Sabin,  Moritz  Rosenthal. 

Stock  Transfer  Agent — The  New  York  Trust  Company, 
Stock  Registrar — United  States  Mortgage  and  Trust  Com- 
pany of  New  York. 

Auditors — Price,  Waterhouse  &  Company. 


THE  PRAIRIE  OIL  &  GAS  COMPANY 

The  Prairie  Oil  &  Gas  Company  was  incorporated  on  De- 
cember 15,  1900,  under  the  laws  of  Kansas.  The  company  acts 
soleiv  as  a  producer,  purchaser  and  marketer  of  crude  oil. 
It  o])(  T-ales  in  Oklahoma,  Kansas,  Texas  and  Wyoming. 

Capital  Stock — The  authorized  capital  stock  is  $20,000,000, 
of  which  $18,000,000  is  outstanding.    Par  Value,  $100, 

Bonds — On  December  31,  1911,  there  was  $17,000,000  ol 
bonded  debt  ourstandins.  of  which  $8,000,000  bonds  were 
retired  during  1912,  and  $5,000,000  during  1915,  making  the 
present  amount  oustanding  $4,000,000.  These  are  fifty-year 
debenture  6s,  due  1955  to  1960;  interest  January  and  June  1st. 

The  company  announced  after  the  annual  meeting  on 
December  8,  1914,  that  the  stockholders  had  authorized  the 
svorking  out  of  plans  to  separate  its  producing  and  transport- 
ing business.  As  a  result,  the  Prairie  Pipe  Dine  Company  was 
Incorporated  in  Kansas  with  a  capital  of  $27,000,000,  all  of 
which  was  turned  over  to  the  parent  company  In  exchang-? 
for  its  pipe  line  properties.  This  stock  was  then  distributed 
to  Prairie  Oil  and  Gas  Company  shareholders. 

Dividends. — Since  dissolution,  dividends  have  been  paid  as 
follows : 


1918- 

— Apr  30 

5% 

$900,000 

I'^Mi^— Jan  ir; 

3% 

$540,000 

Jan  31 

5% 

900,000 

191  n— Apr  21 

150% 

Stk.  Div. 

1917- 

—Oct  31 

7% 

1.260,000 

19 14 — 

None 

Jul  31 

3% 

540,000 

1913 — Pv'b  2S 

6% 

1,080,000 

Apr  30 

5% 

900,000 

1912 — IN'ov  30 

1,080,000 

Jan  31 

5% 

900,000 

Sep  2  3 

6% 

1,080,000 

1916- 

—Oct  31 

5% 

900,000 

Jun  29 

1,080,000 

Jul  31 

5% 

900.000 

Mar  30 

7% 

1,260,000 

Apr  29 

5% 

900,000 

Total  : 

Dividends  since  the 

$14,220,000 

Properties — -The  company  controls  leases  on  hundreds  of 
thousands  of  acres  of  oil  lands,  in  Oklahoma,  Kansas,  Texas 
and  Wyoming.  It  is  one  of  the  largest  and  most  enterprising 
oil  development  companies  in  the  country.  It  controls  valu- 
a,blc  properties  in  the  leading  producing  areas  of  Kansas  and 
Oklahoma  and  for  several  years  past  has  maintained  a  daily 
production   from  its  properties  in   those   two  states  ranging 


Prairie  Oil  &  Gas  Company 


between  20,000  and  25,000  barrels.  Since  the  segregation  of 
its  pipe  line  properties,  the  company  has  purchased  prac- 
tically all  of  the  oil  ^run  by  the  Prairie  Pipe  Line  Company. 

In  connection  with  its  marketing  business,  it  maintains 
steel  storage  for  50,000,000  barrels  of  crude  oil,  representing 
an  investment  of  upwards  of  $12,000,000. 

Following  a  recent  decision  of  the  Federal  Courts  declar- 
ing the  Texas  Corporation  license  tax  law  unconstitutional, 
the  company  has  entered  the  Texas  fields.  The  Prairie  Oil  & 
Gas  Company  of  Texas  was  incorporated  in  January,  191S, 
with  a  nominal  capital  of  $20,000  and  with  headquarters  in 
Houston.  The  company  thereafter  took  up  leases  on  78,000 
acres  in  the  new  fields  of  Stevens,  Eastland,  Coleman,  Erath, 
Parker  and  Palo  Pinto  counties,  North  AVest  Texas.  The 
company  also  entered  into  an  arrangement  with  the  Texas 
and  Pacific  Coal  Company  to  develop  50,000  acres  of  its  proven 
oil  lands  in  the  vicinity  of  Ranger,  Eastland  county.  The 
terms  of  this  agreement  are  said  to  include  the  payment  of 
a  bo-nus  of  $1,500,000  to  the  Texas  and  Pacific  Coal  Company, 
the  Prairie  company  moreover  to  drill  tv^enty-one  test  wells, 
free  of  cost  to  the  Texas  &  Pacific  Company  if  no  oil  is  found 
and  both  companies  to  divide  equally  the  net  profits  from 
the  oil  produced. 

The  company  has  constructed  five  55,000-barrel  storage 
tanks  near  Ranger  to  take  care  of  expected  production  and 
the  Prairie  Pipe  Line  Company  is  running  a  new  line,  south 
through  the  Healdton  field  to  handle  the  oil. 

The  company  has  made  no  official  announcement  of  its 
entrance  into  the  Wyoming  fields  but  it  is  understood  to  have 
acquired  an  interest  in  the  West  and  Hazlitt  holdings  which 
cover  upwards  of  50,000  acres  in  various  promising  producing 
acres  in  Wyoming  and  Nebraska 

The  company's  financial  report  for  1917  compares  with 
the  previous  year  as  follows:  — 


Assets:  1917  1916  Changes 

Person  Property   $26,725,212  ii;22,934,428  -f  $3,790,784 

Realty    403,647  3,175,393  —  2,771,746 

Bills  Receivable   6,500,000  6,701,673  —  201,673 

Accounts  Receivable....  28,326,005  8,359,926  +  19,966,079 

Securities    712,500    -j-  712,500 

Merchandise   34,800,058  37,345,391  —  2,545,333 

Cash    5,137,988  5,942,892  —  804,904 


Total  Assets   $102,605,409  $84,459,703  +$18,145,706 

Liabilities : 

Capital    Stock   $18,000,000  $18,000,000   

Bonds   4,000,000  4,000,000   

Bills    Payable   3,000,000  3,000,000   

Accounts  Payable   23,861,952  12,262,570  +$11,599;382 

Surplus   53,743,458  47,197,133  +  6,546,325 


Total   Liabilities.. $102,605,409    $84,459,703  +$18,145,706 

A  gain  of  $6,546,325  in  surplus,  after  di.stributing  $3,600,000 
in  dividends,  indicates  earnings  of  $56.37  a  share  after  all 
charges.  This  compares  with  indicated  earnings  of  $8  8  a 
share  in  1910. 

The  company  makes  no  reference  to  its  war  taxes,  but  an 
increase  of  $11,599,382  in  accounts  payable  would  indicate 
that  the  company's  1917  tax  liability  is  included  therein. 

Growth  of  the  company's  volume  of  business  is  indicated  by 
an  increase  of  practically  $20,000,000  in  acronnts  receivable. 
Oil  in  storage  decreased  $2,545,333,  indicatiim  ;i  hi  nvy  with- 
drawal from  reserve  supplies,  as  the  market  price  of  Okla- 
homa   crude    advanced    60    cents    a    barrel    during    the  year. 


70 


Prairie  Pipe  L-ine  Company 


The  company's  working  capital  increased  to  $48,614,599,  a 
gain  of  $5,527,287.  At  the  close  of  the  year  the  book  value 
of  the  stock  was  $393  a  share. 

Because  of  the  segregation  of  the  company's  pipe  lirie 
properties  in  January,*  1915,  it  is  difficult  to  make  a  compara- 
tive table  illustrating  the  company's  growth  over  the  five- 
year  period.  However,  on  December  31,  1911,  the  company 
had  net  assets  of  $36,915,175,  while  on  December  31,  1917, 
net  assets  were  '  $71,743,457,  despite  the  wUhdrawal  of  pipe 
line  assets.  With  the  current  demand  and  pro  vailing  high 
prices  for  Mid-Continent  oil,  the  company  would  seem  to  be 
assured  a  substantial  profit  in  spite  of  war  taxes. 
Officers — President — J.  E.  O'Neill. 

Vice-Presidents — Nelson  K.   Moody  and  W.  S 

Fitzpatrick. 
Treasurer — E.  T.  Patterson. 
Secretary — John  T.  Hallihan. 
Directors — The  above-named  officers. 
Transfer  Office — Independence,  Kansas.  , 
Annual  Meeting — Second  Tuesday  in  December. 


PRAIRIE  PIPE  LINE  COMPANY 

The  Prairie  Pipe  Line  Company  was  incorporated  January 
14,  1915,  under  the  laws  of  Kansas  to  take  over  the  trans- 
portation business  and  the  equipment  incident  thereto  of  the 
Prairie  Oil  and  Gas  Company. 

Capitalization — $27,000,000.    Par  value,  $100. 

The  stock  was  distributed  pro  rata  among  the  holders 
of  the  $18,000,000  outstanding  capital  stock  of  the  Prairi« 
Oil  and  Gas  Company. 

Dividends — Since  organization,  dividends  have  been  paid  as 
follows : 


1918— Apr  30  10%  $2,700,000  1917— Jan  31  10%  $2,700,000 
Jan  31     10%     2,700,000        1916— Oct  31     10%  2,700,000 

1917— Oct  31  10%  2,700,000  Jul  31  10%  2,700,000 
Jul  31  5%  1,350,000  Apr  29  10%  2,700,000 
Apr  30  10%  2,700,000  Jan  15  5%  1,350,000 
Total  Dividends  since  organization   $24,300,000 

Business — The  company  aets  as  a  common  carrier  of 
crude  oil  in  the  States  of  Kansas,  Oklahoma,  Arkansas, 
Missouri  and  Illinois,  through  which  its  vast  network  of 
gathering  and  trunk  delivery  lines  extend  and  which  furnish 
'n  connection  with  other  pipe  line  systems,  the  largest  outlet 
for  .  Mid-Continent  oil  to  the  Atlantic  seaboard  and  Gulf 
ports. 

Being  a  public  utility  corporation  engaged  solely  In  trans- 
portation, the  company  does  not  act  as  a  purchaser  or 
marketer  of  crude  oil. 

Properties — The  transportation  system  of  this  company 
is  the  largest  in  the  industry.  Briefly  stated,  It  operate* 
S.OOO  miles  of  grathering  and  trunk  lines,  2.000  miles  of  pri- 
vate telegraph  and  telephone  lines.  23  main  pumping  stations 
and  60  field  pumping  stations.  Its  gathering  lines  are  con- 
nected with  4.000  producing  leases  and  about  16,000  producing 
wells  in  Oklahoma  and  Kansas. 

The  capacity  of  Us  gathering  equipment  is  170.000  barrels 
a  day  and  its  trunk  line  system  can  deliver  175,000  barrels 
a  day.  In  order  to  expand  its  facilities  the  company  has 
expended  upwards  of  $5,000,000  in  laying  325  miles  of  eight- 


Prairie  Pipe  Liine  Company 


71 


inch  and  twelve-in>ih  pipe  to  loop  its  delivery  lines  from  Car- 
rolltown,  Mo.,  and  to  double  its  trunk  line  from  Carrolltown 
to  Wood  River,  111.  With  the  completion  of  these  improve- 
ments it  is  able  to  deliver  120,000  barrels  a  day  through  Car- 
rolltown for  points  east  of  the  Mississippi  River.  During 
1C16,  the  company  completed  an  8-inch  line  from  the  new 
Augusta  and  El  Dorado  pools  in  Butler  County,  Kansas,  to 
Neodesha,  Kansas,  and  during  1917  added  a  second  8-inch 
line  to  take  care  of  the  mounting  production  of  the  district. 
The  company  also  has  built  80  miles  of  eight-inch  line  from 
its  Jonesburg  Station  to  Chautauqua  County,  Kansas,  to  the 
Blackwell  Pool  in  Kay  County,  Okla.  During  1918  the  com- 
pany expects  to  complete  a  new  8-inch  line  285  miles  in 
length,  running  from  Cushing,  Okla.,  through  the  Healdton 
field  to  Ranger,  Texas. 

The  bulk  of  the  Eastbound  traffic  goes  in  the  company'ii 
own  lines  to  the  Standard  Oil  Company  of  Indiana's  refin- 
eries, at  Whiting,  Indiana,  and  Wood  River,^  Illinois.  Other 
shipments,  according  to  tariffs  on  file  witt  the  Interstate 
Commerce  Commission,  go  via  the  Indiana,  Buckeye  and 
International  Pipe  Lines  to  the  Imperial  Oil  Company,  Ltd., 
refinery  at  Sarania,  Ont. ;  via  Indiana,  Buckeye,  National 
Transit,  New  York  Transit  and  Northern  pipe  lines  to  re- 
fineries at  New  York  harbor,  Philadelphia,  Baltimore  and 
Pittsburgh;  via  Illinois  Pipe  Line,  Indiana  and  Buckeye  pip© 
lines  to  refineries  at  Lima,  Ohio,  Toledo,  and  Cleveland.  With 
the  completion  of  the  Tidewater  Oil  Company's  transconti- 
nental line  from  Stoy,  111.,  to  Wood  River,  the  Prairie  lines 
have  a  further  avenue  of  delivery  to  the  Atlantic  seaboard. 

To  the  South,  the  company  is  able  to  deliver  35,000  bar- 
rels a  day  to  the  Standard  Oil  Company  of  Louisiana  refinery 
at  Baton  Rouge,  La.,  via  the  Oklahoma  Pipe  Line  and  the 
Standard  Oil  of  Louisiana's  pipe  line. 

In  its  tax  return  to  the  State  of  Oklahoma,  on  July  L 
1914,  Prairie  Oil  and  Gas  Company  reported  an  investment 
of  $4,647,744  In  pipe  line  equipment  in  Oklahoma  and  $21.- 
318,669  outside  of  the  State.  Eighteen  months  later  these 
properties  were  turned  over  to  the  Prairie  Pipe  Line  Com- 
pany for  $27,000,000  in  stock. 

With  the  certainty  that  Oklahoma  and  Kansas  are  the 
principal  sources  of  supply  for  the  great  refining  groups  of 
the  Mid-Continent  and  the  Atlantic  seaboard,  it  is  worth 
while  noting  the  expansion  of  traffic  on  this  system  in  the 
last  five  years: 

Runs  Deliveries 

(Barrels)  (Barrels) 

1918  (4  months)   17,996,000  19,122,211 

1917   48,353,00^  45,104,68.S 

1916   35,856,450  43,846,96^ 

1915   32,136,566  43,490,023 

1914   40,366,858  39,268,292 

1913   37,840,240  34,850,953 

1912   30.870,203  33,668,504 

Prairie  Pipe  Line  Company's  financial  statement  for  1917  ' 
compares  as  follows: 

Assets;  1917  1916  1915 

Real  Estate                        .  $96,673  $96,067  $95,050 

Bills  Receivable   3,000,213  3,000.214        5  000  214 

Personal  Property...   37,198,278  33,722,550  29!l95;911 

Due  from  Banks.  ........  7,691,186  4,761,245        3,421  776 

Accounts  Receivable.....  2,047,162  2,260,130  2,675^825 

Total  Assets   $50,033,462    $43,840,206  $40,388,776 


72 


Solar  Refining:  Company 


Liabilities: 

Capital  Stock    $27,000,000  $37,000,000  $27,000,000 

Accounts  Payable   564,775  641,835  348,358 

Accrued   Depreciation   3,863,253  2,554,537  1,241,677 

Tax  Reserve  Account....  4,759,683  362,290   

Surplus    13,845,750  13,281,544  11,798,741 

Total    Liabilities...  $50,033,462    $43,840,206  $40,388,776 

An  increase  of  $5G4,206  in  surplus  after  distributing  $9,- 
450,000  in  dividends  and  reserving  $4,759,683  for  taxes,  indi- 
cates that  operating  profits  in  1917  were  at  the  rate  of  54.7 
per  cent.,  compared  with  40.5  per  cent,  in  1916.  After  deduct- 
ing $17.62  a  share  for  war  taxes,  the  balance  available  for 
dividends  was  $37  a  share.  In  view  of  the  company's  pro- 
gram of  plant  expansion  in  Texas  and  southern  Oklahoma  it 
is  encouraging  to  note  that  net  cash  assets  are  $7,413,053  after 
^setting  aside  $4,759,683  for  war  taxes.  Plant  investment  in- 
■creased  $3,475,728  after  writing  off  $1,308,716  for  depreciation. 
'Tile  book  value  of  the  stock  increased  to  $151.28. 

Under  rhe  recent  decision  of  the  Supreme  Court,  making 
all  interstate  pipe  lines  common  carriers,  the  company  has 
filed  with  the  Interstate  Commerce  Commission  its  schedules 
of  rates.  From  Oklahoma  to  Cleveland,  Ohio,  via  the  Ohio 
Oil  Company  and  the  Buckeye  Pipe  Line  or  via  the  Indiana 
Pipe  Line  and  the  Buckeye  Pipe  Line,  the  rate  is  58  cents 
a  barrel,  plus  a  gathering  charge  of  12  cents.  To  New  York, 
Philadelphia  or  Pittsburg,  via  the  same  lines  and  eastern 
connection,  the  rate  is  70  cents  a  barrel.  This  covers  a  haul 
of  approximately  1,200  miles.  . 

Officers — President,   William   P.  Gates. 

Vice-President,  Clark  F.  Kountz. 
Treasurer,  F.  N.  Wilhelm. 
Secretary,   R.    G.  Hare. 
Directors — The  above  and  George  Coyle,  of  Tulsa,  Okla. 
Transfer  Office — Independence.  Kansas. 
Annual  Meeting: — First  Tuesday  in  March. 

THE  SOLAR  REFINING  COMPANY 

The  Solar  Retiriing  Curiipan>  was  incorporated  in  1886 
under  the  laws  of  Ohio. 

Capital  Stock — $2,000,0  00;  par  value,  $100.  The  capital 
stock  was  $500,000.  On  June  16,  1913,  the  stockholders  rati- 
fied the  proposal  to  increase  the  capital  to  $2,000,000  by  a 
300  per  cent,  stock  dividend,  which  was  distributed  June  30. 

Dividends^ — Since  the  dissolution  dividends  have  been  paid 
as  follows: 

1918_jun  20  5%  $100,000  1914— Dec  20  5%  $100,000 
1917 — Dec  20     30%        100,000  Jun  20       -V  r  mo.O'.K) 

Jun  20  5%  100,000  1913 — Dec  20  35%  700.000 
1916 — Dec  20      5%        100,000  Jun  30  300%     Stk.  Div. 

Jun  20       5%        100,000  Jun  20     20%  100,000 

1915 — Dec  20      5%        100,000        1912 — Dec  20     20%  100»000 

Jun  20      5%  100,000 

Total  Dividends  since  the  Dissolution   $2,300,000 

Properties — This  company  owns  a  refint-ry  at  Lima,  c)hl() 
which  is  complete  in  all  its  branches,  manufacturing  some 
gpecialties.  The  plant  has  a  maximum  capacity  of  about 
15,000  barrels  per  day.  It  has  pipe  line  connections  with  the 
Buckeye  Pipe  Line  Company  and  the  Illinois  Pipe  Lme. 

It  is  reported  that  the  company  owns  about  280  acres  of 
plant  land  and  that  it  employs  about  800  men.     The  plant 


Solar  Refining:  Company 


73 


is  in  good  repair  and  the  management  is  able,  active  and 
progressive.  The  company  will  have  expended  $1,000,000  in 
plant  expansion  by  the  close  of  1918  in  persuance  of  a  policy 
adopted  in  1914.  Part  of  this  expenditure  has  been  for  the 
installation  of  Burton  pressure  stills  for  the  manufacture  of 
motor  spirit.  By  these  extensions  the  company  has  expanded 
its  output  and  earning-  capacity  by  50  per  cent,  in  the  last 
three  years. 

The  company  distributes  the  greater  part  of  its  products 
in  the  States  of  Ohio,  Kentucky,  Indiana  and  Michigan. 

The  company's  financial  report  for  1917  compares  with 
that  of  the  previous  year  as  follows: 


1917             1916     .  Change. 

Profit  for  Year                        $1,831,509  $1,104,601  +  $726,908 

Less  Dividends                            700,000         200,000  -}-  500,000 

Income    and    War  Excess 

Profits  Taxes                          689,190    -f  689,190 

Carried  to  Surplus   $442,319       $904,601    —  $462,282 

Balance  Sheet  as  of  December  31st 
Assets:                              1917             1916  Change 
Real    Estate   $60,457  $60,457   

Plant    $3,075,105    $2,732,082    +  $343,023 

Incomplete   Construction. .  .       308,859         290,115    -{-  18,744 

$3,383,964    $3,022,197    +  $361,767 
Less  Depreciation   1,761,878      1,687,564    -j-  74,314 

Plant  After  Depreciation..  $1,C>22,086  $1,334,633  -f  $287,453 

Inventories    1,282,362  1,028,155  -f  254,207 

Insurance  Res.    (invested).  242,094  240,843  -|-  1,251 

Accounts    Receivable   618,927  230,680  -f  388,247 

Cash  &  Other  Investments  1,940,874  1,698,458  +  242,416 

Total   Assets   $5,766,800  $4,593,226  +$1,173,574 

Liabilities : 

Capital   Stock   $2,000,000  $2,000,000   

Accounts  Payable   383,490  341,427  +  $42,063 

Liability  for  Taxes   689,190    +  689,190 

Surplus    2,694,118  2,251,799  +  442,319 

Total  Liabilities   $5,766,800    $4,593,226  -f$l,173,574 

Profits  for  1917,  after  depreciation  but  before  deducting 
war  taxes,  exceeded  those  of  the  previous  year  by  66  per  cent, 
and  were  the  largest  in  any  year  since  the  dissolution.  After 
allowing  $689,190  for  income  and  war  excess  profits  tax,  net 
profits  for  1917  were  equal  to  57.11  per  cent,  on  the  com- 
pany's $2,000,000  capital  stock,  against  55.23  per  cent,  in 
1916,  17.69  per  cent,  in  1915  and  a  deficit  in  the  previous  year. 

Notwithstanding  the  payment  of  $700,000  (35  per  cent  ) 
in  dividends  in  1917  and  $689,190  for  war  taxes,  the  companv 
added  $442,319  to  its  surplus.  Net  assets  increased  during  the 
year  from  $4,251,799  to  $4,694,120.  Working  capital  on  De- 
cember 31,  1917,  amounted  to  $3,700,767,  indicating  the  strong 
financial  position  of  the  company.  Book  value  of  the  stock 
was  over  $234.  a  share  on  December  31,  1917. 

The  value  of  the  company's  plant  account  increased  $361  - 
767  during  the  year  against  which  $74,314  was  charged  to 
depreciation  making  an  increase  of  $2S7,453  in  the  value  of 
the  plant  account  after  depreciation.     The  most  interesting 


74 


Southern  Pipe  Line  Company 


feature  of  the  development  of  the  Solar  Refining  Company 
since  the  dissolution  has  been  the  steady  increase  in  its  Plant 
Account  given  in  the  table  below.  The  conservativeness  of 
the  company's  management  is  emphasized  by  the  large 
amounts  charged  off  from  year  to  year  to  depreciation.  The 
figures  are  as  follows: 


1917. 
1916 . 
1915. 
1914. 
1913. 
1912. 


Plant 
Investment 
^3,383,964 
3,023,19'? 
2,587,040 
2,500,499 
2,306,761 
2,272,769 


Accrued 
Depreciation 
$1,761,878 
1,687,564 
1,637,912 
1,562,398 
1,507,010 
1,450,930 


Increase  1912  to  1917  $1,111,195 


$310,948 


Net 
Plant 
$1,622,086 
1,334,632 
949,128 
938,101 
799,751 
821,839 

$800,247 


Analysis  of  the  company's  progress  in  the  six  years  since 
the  dissolution  shows  the  following: 


New  Plant  Incomplete 


Invest- 

Con- 

Depre- 

Book 

Net  Profits 

Kate 

ment 

struction 

ciation 

Value 

1917. 

*$1,142,319 

57.10% 

$343,023 

$308,859 

$74,314 

$234.70 

1916. 

1,104,601 

55.20% 

45,042 

290,115 

49,652 

212.59 

1915. 

353,960 

17.60% 

86,541 

75,514 

167.35 

1914. 

t244,610 

193,738 

55,388 

159.66 

1913  . 

925,724 

46.28% 

33,991 

56,070 

181.89 

1912. 

$702.40 

*After  deducting  $689,190  for  war  taxes.  fDeflcit. 

tOn  $500,000  capital,  equivalent  to  $175.60  on  present  capital. 

The  effect  of  the  company's  steady  reinvestment  of  profits 
in  plant  expansion  is  evident  in  the  earnings  of  the  last  two 
years.  Trading  profits  for  1917  were  $1,831,510  before  de- 
ducting war  taxes,  or  practically  double  trading  profits  in 
1913,  when  the  plant,  prior  to  recent  improvements,  was  run 
to  full  capacity.  With  the  completion  of  additional  improve- 
ments during  1918,  the  company  ought  to  be  able  to  show 
trading  profits  of  $2,000,000  or  at  the  rate  of  100  per  cent, 
on  its  present  capital,  during  normal  years. 

Officers  and  Directors — President — J.  G.  Neubauer. 

Vice-President — F.  T.  Cuthberi. 
2nd  V.-P.  &  Treas. — F.  G.  Borges. 
Secretary — N,  D.  Keys. 
Gen.  Supt.— J.  W.  McCarthy. 

Transfer  Office — Lima,  Ohio. 

Annual  Meeting — First  Wednesday  in  January. 


SOUTHERN  PIPE  LINE  COMPANY 

The  Southern  Pipe  Line  Company  was  incorporated  la  1890 
under  the  laws  of  Pennsylvania. 

Capital  Stock— The  capital  stock  was  $5,000,000,  but  it 
was  increased  to  $10,000,000  in  1906.    Par  value,  $100. 

Dividends — Since  the  dissolution,  dividends  have  been  de- 
clared payable  as  follows: 


Southern  Pipe  Line  Company 


75 


1918- 

— Jun 

1 

6%  ^ 

?60o,ooa 

1915- 

—Mar  1 

6% 

$600,000 

Mar 

1 

6% 

600,000 

1914- 

—Dec  1 

6% 

600,000 

1917- 

—Dec 

1 

6% 

600,000 

Sep  1 

8% 

800,000 

Sep 

1 

6% 

600,000 

Jun  1 

8% 

800,000 

Jun 

1 

6% 

600,000 

Mar  1 

8% 

800,000 

Mar 

1 

6% 

600,000 

1913- 

—Dec  1 

8% 

800,000 

1916- 

—Dec 

1 

6% 

600,000 

AugSO 

8% 

800,000 

Sep 

1 

6% 

600,000 

Jun  2 

8% 

800,000 

Jun 

1 

6% 

600,000 
600,000 

Mar  1 

8% 

800,000 

Mar 

1 

6% 

1912- 

—Dec  2 

8% 

800,000 

1915- 

—Dec 

1 

6% 

600,000 
600,000 

>  Aug31 

8% 

800,000 

Sep 

1 

6% 

Jun  1 

6% 

600,000 

Jun 

1 

6% 

600,000 

Mar  1 

6% 

600,000 

Total  Dividends 

;  since  the 

dissolution .  .  .  . 

$17,400,000 

Properties — The  company  owns  and  operates  1,130  miles 
of  pipe  line  and  four  pumping  stations  and  owns  1,179,323 
barrels  of  Iron  tankage. 

The  main  line  is  261  miles  long,  extending  from  Fayette 
County,  Pa.,  from  a  point  on  the  Pennsylvania-West  Virginia 
State  Line,  about  twelve  miles  northeast  of  Morgantown,  via 
Watson,  State  Line,  Knepper  and  Millway,  to  Philadelphia. 
It  embraces  541  miles  of  8-inch  pipe  and  578  miles  of  6-Inch 
pipe. 

Oil  is  received  at  the  western  terminus  from  The  Eureka 
Pipe  Line  Company,  which  is  delivered  to  refineries  at  Phila- 
delphia and  to  the  National  Transit  Company  at  Millway. 
Oil  is  received  also  from  the  National  Transit  Company  at 
Millway.     The  company  has  no  gathering  lines. 

Traffic — Business  of  these  lines  for  the  past  five  years  has 
been  as  follows: 

Operations  Oil  In 

Othpr  T?*»reipts  Deliveries  Tankage 


1918  4  months.           4,954,790                5,019,707  527,824 

1917                             16,545,467               16,339,308  599,663 

1916                             16,162,025               15,873,633  476,342 

1915   12,007,811  12,268,015   

1914                             12,288,691               11,890,943  710,731 

1913                             17,489,806               17,367,896  681,649 

1912                             20,598,159               20,619,580  573,740 

Southern  Pipe  Line  Company's  financial  report  for  1917 
compares  with  that  of  the  previous  year,  as  follows: — 

1917                1916  Increase 

Net    Profits                             $2,534,565        $2,354,371  $180,194 

Dividends    2,399,999  2,399,999 


Surplus    $134,566  *$45,628  $180,194 


♦Deficit. 

Net  profits  were  equal  to  25.34  per  cent,  earned  in  1917, 
compared  with  23.54  per  cent,  in  1916  and  19.66  per  cent, 
in  1915. 

The  Balance  Sheet  as  of  December  31,  1917,  compares 
as  follows: — 


Assets:  1917  1916  Change 

Plant   $5,945,800  $5,948,315  —  $2,515 

Other    Investments   7,624,522  7,097,297  -f  527,225 

Accounts  Receivable   313,048  333,151  —  20,103 

Cash    220,616  367,489  —  146,873 


Total  Assets   $14,103,986    $13,746,252    -f $357,734 


76 


South  Penn  Oil  Company 


Liabilities  1917  1916  Change 

Capital   Stock    $10,000,000  $10,000,000   

Depreciation   1,312,143  1,141,431  +$170,712 

Accounts  Payable   66,188  13,732  +  52,456 

Profit  and  Loss  Surplus.  .  .  2,725,655  2,591,089  +  134,566 

Total   Liabilities          $14,103,986    $13,746,252  +$357,734 

The  company  shows  a  surplus  after  dividends  for  the  first 
time  since  1914.  This  result  was  due  to  a  10  per  cent,  in- 
crease in  traffic.  The  Book  Value  of  the  stock  increased  to 
$127  a  share  of  which  $80.92  were  net  cash  assets. 

The  company's  development  since  the  dissolution  is  set 
forth  comparatively  as  follows: — 


Plant 

Depre- 

Book 

Net  Profits 

Ratio 

Investment 

ciation 

Yahie 

1917 

$2,534,565 

25.34% 

$170,712 

$127.25 

1916 

2,354,371 

23.54% 

^8,813 

169,570 

125.91 

1915 

1,966,756 

19.66% 

17,373 

168,980 

126.36 

1914 

2,528,883 

25.28% 

7,049 

85,550 

130.69 

1913 

3,743,658 

37.43% 

40,154 

177,571 

135.41 

1912 

3,810,450 

38.10% 

*539,760 

129.97 

*Accrued  depreciation  to  December  31,  1912. 


It  is  apparent  that  the  reduction  in  pipe  lino  rates  af- 
fected the  company's  high  earning  power  but  a  liberal  divi- 
dend policy  has  been  maintained  because  of  the  company's 
large  cash  resources. 

Directors — Forrest  M.    Towl,    J.    W.    Vandergrift,    C.  E. 
Loane,  C.  A.  McLouth,  H.  C.  Dorworth. 

Officers — President — Forrest  M.  Towl. 

Vice-President  and  Gen.  Mgr. — J..  W.  Vandergrift. 

Vice-President — J.  H.  Baker. 

Secretary  and  Treasurer — E.  R.  Shepard. 

Asst.  Secretary  and  Treasurer — C.  E.  Loane. 

Transfer  Office — No.  210  Seneca  Street,  Oil  City,  Penna. 

Annual  Meeting — Second  Thursday  in  January 


SOUTH  PENN  OIL  COMPANY 

The  South  Penn  Oil  Company  was  incorporated  in  1889. 
under  the  laws  of  Pennsylvania.  The  company  acquired  con- 
trol of  the  Penn-Mex.  Fuel  Company  in  1912  by  obtaining  51 
per  cent,  of  its  $10,000,000  capital  stock. 

Capital  Stock — The  capital  stock  is  $20,000,000.  Par  value, 
$100,  having  been  increased  from  $2,500,000  to  $12,500,000 
and  then  to  the  present  figure.  On  May  1,  1913.  the  stock- 
holders at  a  special  meeting  voted  to  increase  the  capital 
stock  from  $2,500,000  to  $12,500,000.  75,000  shares  were  dis- 
tributed pro  rata  as  a  stock  dividend  of  300  per  cent,  on 
July  31,  1913,  and  the  balance  of  25,000  shares  were  offered 
to  the  stockholders  for  subscription  at  par  until  the  same 
date.  On  February  14.  19*17,  the  shareholders  voted  to  in- 
crease the  capital  to  $20,000,000,  which  was  done  by  a  6§ 
per  cent,  stock  dividend  distributed  on  March  15,  1917,  to 
stock  of  record  February  14. 


South  Penn  Oil  Company 


77 


Dividends — Since  the  dissolution,  dividends  have  been  pay 
able  as  follows: 


L918- 

— Mar  30 

5% 

$1,000,000 

1915- 

—Mar  31 

3% 

$375,000 

1917- 

—Dec  31 

5% 

1,000,000 

1914- 

—Jun  30 

5% 

625,000 

Sep  29 

5% 

1,000,000 

MarSl 

5% 

625,000 

Jun  30 

5% 

1,000,000 

1913- 

—Dec  31 

5% 

625,000 

MarSl 

5% 

1,000,000 

Sep  30 

3% 

375,000 

Mar  15 

60% 

Stk.  Div. 

Jul  31 

300% 

Stk.  Div. 

1916- 

—Dec  30 

11% 

1,375,000 

Jul  31 

100% 

Rights 
250,000 

Sep  30 

8% 

1,000,000 

Jun  30 

10% 

Jun  30 

8% 

1,000,000 

MarSl 

10% 

250,000 

Mar  31 

5% 

625,000 

1912- 

—Dec  14 

10% 

250,000 

1915- 

—Dec  20 

5% 

625,000 

Sep  14 

10% 

250,000 

Sep  20 

3% 

375,000 

Jun  15 

10% 

250,000 

Jun  30 

3% 

375,000 

Total  Dividends  since  the 

dissolution .  .  , 

...  $14,250,000 

Properties — The  company  is  the  largest  prod,ucer  of  high 
grade  Pennsylvania  oil.  It  owns  about  10,000  wells  in  the 
Appalachian  Field,  extending  throug-h  western  New  York, 
western  Pennsylvania  and  West  Virginia,  having  a  dally  pro- 
duction of  approximately  12,000  barrels.  Its  leases  cover 
about  1,500,000  acres  of  lands,  and  those  actively  operated 
comprises  about  300,000  acres,  while  it  is  estimated  that  more 
tlian  600,000  acres  of  its  leased  land  Is  semi-tested  territory. 
The  company  also  controls  the  New  Domain  Oil  and  Gas 
Company  which  is  active  in  the  Kentucky  fields. 

Many  of  the  company's  old  wells  are  small  pumpers,  which 
it  does  not  operate  unless  the  price  of  crude  justifies  doing  so. 
At  the  present  time  the  company  has  a  production  of  several 
hundred  barrels  a  day  from  wells  yielding  from  one-half  to 
one  barrel  of  oil  daily  under  the  pump. 

During  August,  1917,  the  company  purchased  the  proper- 
ties of  the  Big  Creek  Development  Company,  comprising 
7,500  acres  in  Lincoln  County,  West  Virginia.  On  this  prop- 
erty are  455  producing  wells,  yielding  an  average  of  1,500 
barrels  daily.  The  property  is  fully  equipped  and  served 
by  the  Eureka  Pipe  Line.  The  price  paid  was  upwards  of 
$4,000,000. 

The  company  also  purchases  from  the  producers  all  the 
oil  run  direct  from  the  wells  by  the  New  York  Transit  Com- 
pan,  National  Transit  Company,  South  West  Penna.  Pipe 
Lines  and  Eureka  Pipe  Line.  The  company  receives  a  broker- 
age commission  of  5  cents  a  barrel  for  acting  as  purchasing 
agent. 


South  Penn  Oil  Company's  financial  statement  for  1917 
compares  as  follows: — 


1917 

1916 

1915 

Net  Earnings  

$6,107,723 
4,000,000 

$4,745,089 
4,000,000 

$5,314,150 
1,750,000 

Dividends   

Balance  to  Surplus.. 

$2,107,722 

$745,089 
Sh^et 

$3,564,150 

Comparative  Balance 

Assets: 

1917 

1916 

1915 

Plant   

$14,176,027 
5,446,628 
2,090,216 

$11,224,681 
5,444,738 
1,298,044 

$10,819,102 
5,441,138 
1,400,999 

Stock  Held   

Materials   &  Merchandise 

Cash  and  Oil  on  Hand.. 

2,349,982 

4,349,193 

4,343,325 

Notes,  Bonds  &  M'tgages 

3,208,612 

2,600,000 

2,428,671 

Accounts  Receivable  .... 

721,367 

302,461 

284,498 

Total  Assets   $27,992,832  $25,219,117 


$24,717,732 


78 


South  Penn  Oil  Company 


Liiabilties: 

Capital  Stock    $20,000,000  $12,500,000  $12,500,000 

Accounts    Payable   995,702  329,710  573,414 

I'rofit  and   Loss  Surplus.  *G,997,129  12,389,407  11,644,318 


Total    Liabilities   $27,992,832    $25,219,117  $24,717,732 

*After  deducting-  stock  dividend  of  $7,500,000. 

The  company's  earnings  for  1917  are  equal  to  30.53  per 
cent,  on  the  $20,000,000  stock  outstanding  at  the  close  of  the 
year,  or  at  the  rate  of  48.85  per  cent,  on  former  capitaliza- 
tion. This  compares  with  37.95  per  cent,  earned  in  1916  and 
42.5  per  cent,  in  1915  on  $12,500,000  stock  outstanding  in 
those  years.  On  March  15,  1917,  the  company  distributed  a 
stock  dividend  of  60  per  cent.,  or  $7,500,000,  from  the  surplus 
earnings  of  former  years.  The  Book  Value  of  the  stock  was 
$135  a  share  on  December  31,  1917,  compared  with  $199  a 
share  at  the  close  of  the  previous  year  on  former  capitali- 
zation. Earnings  as  represented  for  1917  include  income  and 
excess  profits  tax,  but  the  company  states  that  it  was  able  to 
add  approximately  $400,000  to  surplus  after  dividends  and 
war  taxes. 

The  company's  growth  since  the  Dissolution  is  shown  com- 
paratively as  follows: — 


Capital  Net  Current 

Earnings     Dividends         Assets  Assets 

1917                   $6,107,723      $4,000,000      $19,622,655  $7,374,475 

1916                     4,745,089        4,000,000        16,669,419  8,219,988 

1915                    5,314,150       1,750,000       16,260,240  7,884,079 

1914                     (Deficit)        1,250,000       12,146,584  8,433,524 

f  1,500,000 

1913                     6,637,702     ^  7,500,000       13,721,539  10,323,846 

I  (Stk.  Div.) 

1912                                            750,000       12,084,228  4,324,058 


From  the  Dissolution  at  the  close  of  1912  to  April  1, 
1918,  the  company  has  distributed  to  its  shareholders,  $14,- 
250,000  in  cash,  $15,000,000  in  stock  and  subscription  rights  at 
par  to  $2,500,000  of  stock.  The  progress  of  the  company, 
despite  the  depletion  of  the  Appalachian  Fields,  is  shown  by 
the  fact  that  net  assets  on  December  31,  1896,  were  $11,758,- 
003;  on  December  31,  1906,  $14,915,185  and  on  December  31, 
1918,  $26,997,129. 

Officers — Chairman — Joseph  Seep. 

President — L.  W.  Young,  Jr. 
Vice-President — E.  E.  Crocker. 
Secretary — R.  W.  Cummins. 
Treasurer — S.  G.  Hartman. 

Directors — The    above-mentioned    officers    In    addition  to 

J.  L.  McKinney  and  P.  H.  Curry. 
Transfer  Office — No.  424  Sixth  Avenue,  Pittsburg,  Pa. 
Annual  Meeting — Third  Tuesday  in  January, 


Southwest  Penn  Pipe  liines 


79 


SOUTH  WEST  PENNSYLVANIA  PIPE  LINES 

The  South  West  Pennsylvania  Pipe  Lines  was  incorporated 
tn  1885  under  the  laws  of  Pennsylvania. 

Capital  Stock — The  capital  stock  is  $3,500,000.  Par  value, 
$100. 

Dividends — Since  the  dissolution,  dividends  have  been  de- 
clared, payable  as  follows: 


1918- 

— Apr  1 

3% 

$105,000 

1914 — Dec  31 

3% 

$105,000 

1917- 

—Dec  31 

3% 

105,000 

Oct  1 

3% 

105,000 

Oct  1 

3% 

105,000 

Jul  1 

5% 

175,000 

Jul  2 

3% 

105,000 

Apr  1 

5% 

175,000 

Apr  2 

3% 

105,000 

1913— Dec  31 

5% 

175,000 

1916- 

—Dec  31 

3% 

105,000 

Oct  1 

5% 

175,000 

Oct  1 

3% 

105,000 

Jul  1 

5% 

175,000 

Jul  1 

3% 

105,000 

Apr  1 

5% 

175,000 

Apr  1 

3% 

105,000 

1912 — Dec  31 

5% 

175,000 

1915- 

—Dec  31 

3% 

105,000 

Oct  1 

5% 

175,000 

Oct  1 

3% 

105,000 

Jul  1 

5 

175,000 

Jul  1 

3% 

105,000 

Apr  1 

5% 

175,000 

Apr  1 

3% 

105,000 

Total  Dividends  since  the 

^3,325,000 

Properties — The  company  owns  and  operates  1,646  mile* 
of  pipe  lines  of  various  sizes  from  2-inch  to  12-inch  pipe,  of 
which  the  trunk  lines  embrace  100  miles  of  8-inch,  271  milei 
of  6-inch,  39  miles  of  5-inch,  and  12  miles  of  4-inch  pipe. 
There  are  three  trunk  line  pumping-  stations  and  thirty-three 
local  pumping-  stations.  The  company  also  owns  1,472,006 
barrels  of  iron  tankage. 

Oil  is  received  from  The  Buckeye  Pipe  Line  Company  at 
various  points  on  the  Ohio-  Pennsylvania  boundary  line;  from 
the  Eureka  Pipe  Line  Co.  at  points  on  the  West  Virginia- 
Pennsylvania  State  line,  chiefly  coming  from  Littleton, 
Downs,  Morgantown  and  Brice;  from  the  National  Transit 
Company  at  Nedskey  and  from  the  Tuscarora  Oil  Company  at 
Cooks  Ferry. 

The  producing  field  in  Pennsylvania  from  which  oil  is  re- 
ceived extends  from  the  Northern  boundary  of  Beaver  and 
Allegheny  Counties  to  the  western  and  southeun  lines  of 
Pennsylvania  and  east  to  the  Monongahela  Riven  Most  ot 
the  oil  transported  is  received  from  and  delivered  to  other 
transporting  companies. 

Traffic — Business  over  these  lines  for  the  last  five  years 
has  been  as  follows: — 

Oil  in 

Other  Receipts       Runs         Deliveries  Tankagre 


(Barrels)  (Barrels)  (Barrels)  (Barrels) 

1918  (4  mos.).  3,699,607  426,005  4,039,769  476,185 

1917   12,305,109  1,468,123  12,681,423  395,134 

1916   12,991,915  1,276,031  14,378,994  467,098 

1915   10,584,530  1,300,732  12,549,583  607,350 

1914   9,185,864  1,385,119  10,506,968  780,698 

1913   13,300,253  1,340,515  14,638,052  688,800 

1912   14,202,960  1,456,436  16,106,403  522,506 


so 


Southwest  Fenn  Pipe  L-ines 


Southwest  Pennsylvania  Pipe  Lines'  financial  statement 
for  1917  compares  with  that  of  the  previous  year,  as  follows: 

1917  1916  Decrease 

♦Profits    $338,536         $456,358  $117,823 

Dividends    419,999  419,999   

Surplus   


t$81,463 


$36,359  $117,822 

♦Profits  are  equal  to  9.67  per  cent,  in  1917  on  $3,500,000 
capital  stock,  13.04  per  cent,  in  1916  and  9.90  per  cent, 
in  1915.  fDeficit. 

The  company's  Balance  Sheet  as  of  December  31,  1917, 
compares  with  previous  year  as  follows: — 

Assets:  1917 

Plant   $3,949,758 

Other  Investments    1,331,891 

Accounts  Receivable    105,737 

Cash    78,339 


1916 
$3,936,037 
1,219,891 
116,529 
218,833 


Total  Assets    $5,465,726  $5,491,290 


Liabilities  1917 

Capital  Stock    $3,500,000 

Depreciation    856,361 

Accounts  Payable    40,208 

Oil  Pur.  and  Sale  Conting.  101,270 

Profit  and  Loss   967,887 


1916 
$3,500,000 
750,782 
74,157 
117,000 
1,049,350 


Change 
+  $13,721 
+  112,000 

—  10,792 

—  140,494 

— $  25,564 
Chang-e 


Total   Liabilities   $5,465,726  $5,491,290 


+$105,579 

—  33,949 

—  15,730 

—  81,463 

—  $25,564 

A  decline  of  5%  per  cent,  in  the  company's  trunk  line 
business  resulted  in  a  slight  deficit  after  the  payment  of 
the  usual  $12  dividend.  There  was  an  increase  in  gathering 
line  business  but  it  was  not  sufficient  to  offset  the  shrinkage 
in  trunk  line  activities.  The  Book  Value  of  the  stock  was 
$127.65  on  December  31,  1917,  of  which  $42.16  a  share  repre- 
sented net  cash  assets. 

Since  the  Dissolution,  the  company's  progress  is  shown 
comparatively  as  follows: — 

Book 

Earningrs  Ratio    Depreciation  Value 

1917   $338,536  9.67%        $105,579  $127.65 

1916   456,358  13.04%  107,028  129.98 

1915   346,453  9.90%  106,815  127.94 

1914   406,359  11.60%  70,387  131.04 

1913   806,227  23.03%  125,505  135.43 

1912   967,661  27.90%        *341,047  133.82 

^Accrued  to  December  31,  1912. 
The  effect  of  reduced  rates  on  the  company's  earnings  is 
apparent  but  a  conservative  dividend  policy  has  kept  the 
surplus  unimpaired,  and  its  cash  position  strong.  Net  as- 
sets on  December  31,  1916,  were  $4,549,350  against  net  assets 
of  $3,453,384  on  December  31,  1906. 

Directors — Forrest  M.  Towl,  E.  G.  Wright  and  J.  M.  Magee, 
Pittsburgh,  Pa. ;   V.  S.  Swisher,  J.  F.  Connors  and 
E.  R.  Shepard,  Oil  City,  Pa. 
Officers — President — Forrest  M.  Towl. 

Vice-President  and  Gen.  Mgr. — E.  G.  Wright 
Vice-President — V.  S.  Swisher. 
Secretary  and  Treasurer — E.  R.  Shepard. 
Assistant  Treasurer — C.  A.  McLouth. 
Transfer  Office — 210  Seneca  Street,  Oil  City,  Pennsylvania 
Annual  Meeting — Wednesday  after  third  Thursday  in  Jan- 
uary. 


81 


STANDARD  OIL  COMPANY  (California) 

The  Standard  Oil  Company  of  California  was  incorporated 
in  1906  under  the  laws  of  California  to  consolidate  the  Stand- 
ard Oil  Company  of  Iowa,  a  marketing  company,  and  the 
Pacific  Coast  Oil  Company,  which  was  organized  in  1879  and 
acquired  by  Standard  Oil  Interests  in  1900. 

Capital  Stock — $100,000,000  is  the  authorized  capitalization 
since  July  14,  1914,  when  the  stockholders  voted  on  a  resolu- 
tion to  this  effect  passed  by  the  directors  on  January  6th. 
The  company  is  therefore  the  first  of  the  former  Standard 
Oil  subsidiaries  to  raise  its  capitalization  to  an  equality 
with  the  parent  company.  The  original  capital  was  $25,000,000 
but  after  dissolution,  the  stockholders  on  July  20,  1912, 
authorized  an  increase  to  $50,000,000,  which  was  accomplished 
by  extending  subscription  rights  at  par  first  to  80  per  cent, 
of  holdings  and  thereafter  to  10  per  cent,  of  holdings.  On 
July  14,  1914,  the  stockholders  authorized  an  increase  of 
authorized  capitalization  to  $100,000,000,  which  was  accom- 
plished first  by  a  50  per  cent,  stock  dividend  and  thereafter 
by  a  33  1-3  per  cent,  stock  dividend. 

The  various  increases  of  the  company's  outstanding  capital 
are  set  forth  in  the  following  table: — 

Stock  Dividend 
Outstanding:      or  Sub.  Rights  New 
Capitalization  at  Par  Capitalization 

Aug.   31  1912...  $25,000,000       80%  Sub.  Rights  $44,93.3,994 

Feb.  2,  1914          *4r>, 183,993        10%  Sub.  Rights  49,686,655 

Apr.  30,  1916...  49,686,665  50%  Stock.  Div.  74,529,983 
Apr.   15,  1917...     74,.529,983        33  1-3%  Stk.  Div.  99,373,310 

*2,500  shares  at  $200  per  share  were  issued  in  November, 
1913,  in  part  payment  for  the  4,000  acres  of  producing 
lands,  purchased  from  the  Murphy  Oil  Company. 

Income  Tax  Ruling — By  resolution  of  the  Board  of  Direc- 
tors of  the  company,  it  is  provided  that  the  stock  dividend 
declared  January  18,  1916,  shall  represent  surplus  profits  of 
the  company  prior  to  March  1,  1913,  amounting  to  $20,353,- 
068.34,  and  the  first  surplus  profits  earned  thereafter  up  to 
$4,490,259.40  and  that  the  stock  dividend  declared  January 
16,  1917,  shall  represent  the  first  surplus  profits  of  the  com- 
pany earned  after  March  1.  1913,  over  and  above  $4,490,259.40. 

In  view  of  this  action  of  the  board,  the  ofllce  of  the  Com- 
missioner of  Internal  Revenue  has  ruled  that  the  proportion 
of  the  surplus  of  the  company  earned  to  March  1,  1913,  and 
refiected  in  the  stock  dividend  declared  January  18,  1916, 
may  be  eliminated  by  stockholders  in  their  income  tax  re- 
turns for  the  year  1916.  Therefore,  under  this  ruling  18.0743 
per  cent,  of  the  1916  stock  dividend  is  returnable  for  income 
tax  purposes,  and  the  remainder  of  the  1916  stock  dividend 
is  not  taxable. 

Dividends — Since  the  dissolution  an  initial  dividend  of  2V2 
per  cent,  was  paid  on  November  15,  1912,  and  thereafter  a 
quarterly  rate  of  2V2  per  cent,  has  been  maintained  through- 
out all  the  increases  of  capital.  Cash  dividends  paid  from 
November  15,  1912,  to  June  15,  1918,  aggregate  $36,558,345. 

Business — The  Standard  Oil  Company,  California,  repre- 
S3ents  /n  its  organization  every  branch  of  the  oil  industry,  bein? 
engaged  in  the  producing,  refining,  transporting  and  market- 
ing of  oil  and  its  by-productg. 

Proflucing  Properties — Until  the  early  part  of  1913,  the 
company  was  a  large  purchaser  of  oil,  its  own  wells  furnish- 
ing but   10,000   barrels   a   day.     Development   work   in  1913 


S2 


Standard  Oil  Company — California 


brought  success  in  all  fields  and  by  the  close  of  the  year 
the  bringing  in  of  a  series  of  gushers  had  raised  the  com- 
pany's production  for  that  year  to  a  daily  average  of  26,575 
barrels.  During  1917,  the  production  from  the  company's 
own  wells  was  18,286,588  barrels,  a  gain  of  3,509,464  barrels 
over  the  previous  year.  The  growth  of  the  company's  produc- 
ing and  pipe  line  business  is  shown  in  the  following  table: — • 

Daily  Average      Average  Crude 


Production  Daily  Pipe  Oil  Stored 

Own  Wells  Line  Runs  Dec.  31 

1917                       45,352  BblB.  83,596  Bbls.  15,101,696  Bbls. 

1916                       35,632  Bbls.  75,944  Bbls.  22,753,178  Bbls. 

1915                       31,656  Bbls.  90,715  Bbls.  26,682,064  Bbls. 

1914                       34,869  Bbls.  109,949  Bbls.  26,058,077  Bbls. 

1913                       26,575  Bbls.  85,902  Bbls.  24,310,310  Bbls. 

1912   10,846  Bbls  


The  success  which  has  crowned  the  efforts  of  the  com- 
pany's production  department  is  the  belated  reward  of  $14,- 
000,000  spent  in  exploration  and  development  work  before 
the  company's  wells  netted  a  cent  of  profit. 

Refining  Properties — The  company  operates  three  refineries 
That  at  Point  Richmond,  near  San  Francisco,  was  practically 
rebuilt  at  an  expenditure  of  $10,000,000  during  1912.  The 
secondary  refinery  at  El  Segundo,  near  Los  Angeles,  was 
completed  in  139  days  during  1913  and  the  Kern  River  refinery, 
near  Bakersfleld,  was  completed  in  November,  1913.  The 
combined  capacity  of  the  three  refineries  is  over  100,000 
barrels  a  day  at  this  date  and  is  Increasing  constantly,  a» 
building  operations  never  have  ceased  since  the  company 
began  independent  operations. 

The  Point  Richmond  refinery  on  San  Francisco  Bay  in 
one  of  the  most  complete  In  the  world.  It  spreads  over  435 
acres  and  employs  1,700  men.  65,000  barrels  of  crude  oil  are 
refined  daily.  There  are  117  big  stills,  adequate  condenser! 
and  receiving  houses,  41  agitators,  182  storage  tanks,  an 
engine  house  capable  of  developing  22,000  horsepower;  an 
acid  plant  manufacturing  170,000  pounds  of  sulphuric  acid 
daily  for  purifying  oils;  a  grease  plant;  an  asphaltum  plant; 
a  can  factorj^  with  a  capacity  of  25,000  five-gallon  cans  a 
day;  a  cooperage  works;  a  machine  shop,  a  tank  car  repair 
shop,  a  ship  yard,  and  pumping  houses,  and  interconnecting 
the  entire  plant  runs  a  maze  of  pipe  lines,  360  miles  In  all, 
through  which  are  handled  the  crude  and  many  of  the  refl.ned 
oils,  as  well  as  steam,  air  and  fresh  and  salt  water. 

From  the  refinery  the  oils  are  run  by  gravity  directly  to 
the  railroad  yards,  where  50  tank  cars  can  be  loaded  at 
once.  Other  pipe  lines  convey  oil  to  the  company's  pier 
extending  a  mile  out  into  the  bay,  where  the  company's 
ships  and  barges  are  loaded.  There  Is  a  second  shipping  pier 
at  Point  Orient,  five  miles  below  the  refinery. 

The  company  recently  has  purchased  100  acres  imme- 
diately adjoining  its  refinery  to  provide  for  further  ex- 
tensions. 

To  obviate  fire  danger,  oil  for  the  Richmond  refinery  Is 
stored  at  the  tank  farm  at  San  Pablo,  which  covers  1,200 
acres.  The  company  now  has  storage  capacity  there  for 
25,000,000  barrels  of  oil  and  is  increasing  its  tankage  facilities. 

The  El  Segundo  refinery  on  the  ocean  front  near  Lot 
Angeles  is  adjacent  to  the  Pullerton  field  and  the  new  Merced 


standard  Oil  Company — California 


83 


Hills  district,  both  of  which  have  been  developed  by  the 
company.  The  plant  has  a  daily  capacity  of  30,000  barrels, 
storage  for  2,800,000  barrels  of  refined  oils  and  1,100,000 
barrels  of  crude  oil,  and  additional  tankage  is  under  con- 
struction. There  Is  also  an  acid  plant  with  a  dai.iy  output 
of  24,000  pounds  and  an  asphalt  plant  with  a  daily  capacity 
of  75  tons.  Loading  racks  for  tank  cars  and  a  shipping  pier 
adjoin  the  refinery,  providing  facilities  for  loading  860  tank 
cars  daily.  A  cooperage  shop,  casing  plant  and  machine 
shop  complete  the  equipment  and  make  the  refinery  as  up- 
to-date  as  any  in  the  country.  Acreage  for  extending  the 
plant  to  six  times  its  present  capacity,  when  necessary,  has 
been  acquired  recently. 

The  new  Bakersfield  refinery,  with  a  present  capacity  of 
10,000  barrels,  is  situated  in  the  heart  of  one  of  the  oldest 
producing  districts  and  is  supplied  by  the  company's  own 
wells.  The  Kern  River  oil  is  fourteen  degrees  gravity  and 
under,  and  this  plant  specializes  in  asphaltum  products. 

The  company  has  installed  a  very  large  gasolene  com- 
pression plant  on  its  McNee  properties  in  the  Midway  field. 
The  plant  will  handle  12,000,000  cubic  feet  of  natural  gas 
daily  and  will  yield  between  15,000  and  20,000  gallons  of 
gasolene  daily. 

Transportation  Properties — The  company  operates  a  total 
of  1,100  miles  of  pipe  line.  The  main  trunk  lines  extend  for 
350  miles  through  the  San  Joaquin  Valley  from  Midway  to 
Point  Richmond,  with  a  branch  line  to  Coalinga.  There  are 
three  lines  paralleling  each  other,  two  eight-inch  lines  and 
one  twelve-inch  line,  the  last  just  completed.  The  total 
capacity  of  these  lines  is  80,000  barrels  a  day.  From  the 
Santa  Maria  field  to  Port  Hartford  there  is  an  eight-inch 
line,  40  miles  in  length.  From  the  Newhall  field  to  Ventura 
runs  forty  miles  of  four-inch  line  and  the  twenty-three  miles 
between  the  Whittier-Fullerton  districts  to  El  Segundo  li 
transversed  by  two  six-inch  lines  and  an  eight-inch  line 
recently  completed.  The  combined  capacity  of  the  company'* 
lines  is  In  excess  of  100,000  barrels  a  day. 

During  1913,  the  California  legislature  passed  a  law  requir- 
ing all  pipe  lines  to  become  common  carriers.  Although  pro- 
testing that  the  law  was  unjust,  as  it  might  deprive  it  of 
the  use  of  lines,  which  it  had  built  solely  to  transport  it« 
own  oil,  the  company  accepted  the  law  and  was  the  only 
pipe  line  company  in  the  state  to  do  so.  The  other  companiei 
have  appealed  to  the  Federal  Courts  against  the  enforcement 
of  the  statute. 

For  water  transportation  the  company  operates  a  fleet  of 
thirty  vessels,  consisting  of  ocean-going  tankers,  barges,  river 
boats,  tugs  and  launches,  ranging  in  carrying  capacity  from 
500  barrels  to  80,000  barrels.  The  "Richmond"  and  a  sister 
ship,  the  "J.  A.  Moffett,"  of  60,000  barrels  carrying  capacity, 
were  joined  during  1916  by  the  "D.  G.  Scofield"  of  8,704  gross 
tonnage  with  carrying  capacity  for  80,000  barrels  of  oil,  and 
"La  Primera,"  a  steamship  of  612  tons,  for  carrying  package 
goods  to  the  Orient.  Three  other  tankships  of  8,000  tons, 
with  85„000  barrels  capacity  are  under  construction  for  the 
company  at  the  Union  Iron  Works,  San  Francisco.  With  the 
delivery  of  these  later  vessels,  the  company's  fleet  will  repre- 
sent a  total  carrying  capacity  of  nearly  750,000  barrels  of  oil 
and  250.000  cases. 


8  4  Standard  Oil  Company — California 

The  company's  fleet  is  constituted  as  follows: 

Carrying  Capa 

(Barrels 

S.  S.  "D.  G.  Scofleld"  Coastwise  &  Foreign  80,000 

S.  S.  "Richmond"   Coastwise  &  Foreign  65,0€0 

S.  S.  "J.  A.  Moffat"  Coastwise  &  Foreign  65,000 

S.  S.  "Acme"   Coastwise  &  Foreign  80,000 

*S.  S.  "D.  G.  Scofield"  Coastwise  &  Foreign  80,000 

S.  S.  "Capt.  A.  P.  Lucas".  .  .Coastwise  &  Foreign  40.000 

S.  S.  "Col.  E.  L.  Drake"  Coastwise  &  Foreign  40,000 

S.  S.  "El  Segundo"   Coastwise  &  Foreign  34,000 

S.  S.  "Ascunsion"   Coastwise  &  Foreign  21,000 

S.  S.  "Atlas"   Coastwise  &  Foreign  16,000 

S.  S.  "Maverick"   Coastwise  &  Foreign  12,000 

S.  S.  "George  Loomis"  Coastwise  &  Foreign  7,000 


Carrying  Capacity 

(Barrels) 


M.S.   "La  JNIerced"  Coastwise  &  Foreign  Case  Oil 

Barge  S.  O.  Co.  No.  95  Coastwise  &  Foreign  48,000 

Barge  S.  O.  Co.  No.  93  Coastwise  &  Foreign  28,000 

Barge  S.  O.  Co.  No.  91  Coastwise  &  Foreign  23,000 

Barge  No.  1  Harbor  4,500 

Barge  No.  2  Harbor  800 

Barge  No.  3  Harbor  2,000 

Barge  No.  4  Harbor  5,500 

Barge  No.  5  River  2,200 

Barge  No.  6  Harbor  650 

Barge  No.  7  Harbor  5,500 

Barge  No.  8  Harbor  2,200 

Gasolene  Barge  "Petroleum"   Harbor  400 

Gasolene  Barge  "Petroleum"  No.  2  Harbor  1,200 

Gasolene  Barge   "Pico"   Harbor  1,200 

Stern  Wheeler    "Petroleum"  No.  3  River  1,500 

Gasolene  Barge  "Contra  Costa"  Harbor  7,500 

Gasolene  Barge  "Benecia"   Harbor  2,200 

Stern  Wheeler    "San  Jose"  River  500 

Tug  "Standard  No.  1"  Harbor   

Freight  &  Launch  "Dispatch"  Harbor   

Two-thirds  of  the  company's  output  of  llluminants  is  e>: 


ported,  mostly  to  the  Orient,  ships  of  the  Standard  Oil  Companj 
of  New  York  loading  at  Port  Richmond  for  China  and  Japan. 
Twenty-five  per  cent,  of  the  American  oil  shipped  to  China 
last  year  went  from  California  and  all  but  a  few  cargoe* 
was  furnished  by  Standard  Oil  Company  of  California.  The 
company  also  furnished  sixty  per  cent,  of  the  American  oil 
that  went  to  Japan.  Cargoes  of  the  company's  llluminants 
went  last  year  to  British  India  and  the  Dutch  Indies.  The 
company  also  has  worked  up  a  substantial  trade  in  lubricants 
in  Australia. 

The  company  markets  gasolene  and  engine  and  stove  dis- 
tillates in  Central  and  South  American  countries. 

The  company  maintains  an  extensive  marketing  organiz- 
tion  for  the  distribution  of  its  output.  There  are  fifteen  main 
supply  stations  between  Nome,  Alaska,  and  San  Diego,  Cal., 
and  nearly  200  subsidiary  stations  from  which  refined  oils  are 
distributed  through  contiguous  territi^ry  by  the  company's 
tank  wagons.  The  domestic  business  covers  the  Pacific  slope 
stations,  Alaska  and  the  Hawaiian  Islands,  and  the  com- 
pany's export  stations  are  located  through  Japan.  India, 
Java  and  the  West  Coast  of  Central  and  South  America. 


\ 


standard  Oil  Company — California 


85 


The  company  claims  the  distinction  of  having  inaugurated 
the  Service  Station  idea,  whereby  gasolene  is  sold  direct  to 
the  consumers.  The  company  has  more  than  300  of  these 
stations  in  operation  and  is  continually  adding  to  the  number. 

Standard  Oil  Company,  California's,  financial  statement 
for  1917  compares  as  follows: — 

1917  1916 

Net  Earnings    $30,377,073  $21,263,520 

Depreciation    3,620,494  3,658,216 

Balance       .    $26,756,579  $17,605,304 

Depletion   2,276,839   

Balance    $24,479,740  $17,605,304 

Excess  Profits  and  Income  Tax  (Esti- 
mated)   5,830,116   

Balance  $18,649,624  $17,605,304 

Cash  Dividends    9,316,247  6,831,915 

Surplus   $9,333,377  $10,773,389 

Previous  Surplus    30,782,324  44,852,263 

Total  Surplus    $40,115,701  $55,625,652 

Stock  Dividend    24,843,327  24,843,328 

Final  Surplus    $15,272,374  $30,782,324 

Balance  Sheet — The  balance  sheet  as  of  Dec.  31,  1917: 

Assets:  1917  1916 

Plant   $80,979,929  $72,010,645 

Other  Investments    1,676,610  99,369 

Inventories   26,799,564  26,166,272 

Deferred  Charges    730,710 

Accounts  Receivable    10,371,893  8,031,708 

Employes'  Liberty  Loan   1,007,892   

Cash    5,356,758  2,646,756 

Unexpired  Insurance,  Taxes,  etc....    445,509 

Total    $126,923,160  $109,400,259 

liiabilities : 

Capital  Stock    $99,373,310  $74,529,983 

Accounts  Payable    5,312,669  3,837,952 

Capital  Stock  Premium  Account...,  250,000  250,000 

Excess  Profits  Income  Tax   (Est.)..  5,830,116 

Merchandise  Due  on  Contract   884,687  .  .  .  .  .  . 

Surplus    15,272,378  30,782,324 

Total  .  .    $126,923,160  $109,400,250 

For  its  first  year  of  operation  as  a  $100,000,000  corpora- 
tion, Standard  Oil  Company  of  California  reports  net  trading 
profits  of  $30,377,073,  from  which  after  reserving  $5,830,116 
for  war  taxes;  $3,620,494  for  depreciation,  and  $2,276,839 '  for 
well  depletion,  it  had  $18,649,624  available  for  dividends. 
The  year  proved  the  best  in  the  company's  long  and  suc- 
cessful history. 

In  his  report  to  the  shareholders.  President  W.  T.  Rheem 
touches  briefly  but  informingly  on  the  company's  various 
activities,  as  follows: 

During  1917  the  company  drilled  and  completed  120  wells. 
It  added  to  its  holdings  by  purchase  and  lease  1,395  acres  of 


86 


Standard  Oil  Company — California 


developed  properties,  which  at  the  time  of  purchase  were 
producing-  about  2,000  barrels  per  day  and  which  had  since 
been  increased  to  3,000  barrels  per  day.  During  the  year 
the  company  also  endeavored  "by  wild  catting-"  to  develop 
new  oil  fields.  This  effort  has  been  attended  with  some 
failures  and  considerable  success,  the  most  notable  success 
being  in  the  Merced  Hills,  some  seven  miles  east  of  the  City 
of  Los  Angeles,  from  which  the  company  now  has  a  produc- 
tion of  10,700  barrels  per  day  from  seven  wells  finished.  The 
smallest  company  well  in  this  field  came  in  with  a  production 
of  500  barrels  per  day  and  the  larg-est  at  the  rate  of  8,000 
barrels.  This  last  named  well,  although  several  months  old, 
is  still  producing  5,000  barrels  per  day.  This  particular  field, 
in  which  the  company  has  767  acres  under  lease,  promises 
to  be  a  prolific  producer. 

As  to  pipe  lines  the  report  says  that  the  Northam  El 
Segundo  system  was  increased  by  the  addition  of  10-inch 
line  22.6  miles  in  length,  a  branch  line  of  6-inch  pipe  was 
constructed  to  the  new  fields  in  the  Merced  Hills  (Montebello) 
9.5  miles.  j 

Of  the  expenditures  for  plant  account  $3,276,221  was  "used 
to  increase  the  plants  of  the  refineries  at  Richmond,  El 
Segundo  and  Bakersfield.  This  expenditure  covered  increased 
still  capacity,  delivery  lines  from  El  Segundo  to  San  Pedro 
harbor,  both  for  fuel  oil  and  light  products  and  other  con- 
struction of  less  magnitude  made  necessary  by  the  ever  in- 
creasing demand  for  the  company's  products. 

There  were  added  to  the  company's  fleet  during  the  year 
1917  the  steamers  John  Ena  with  a  carrying  capacity  of 
105,000  cases,  and  the  Dunsyre,  capacity  85,000  cases, 
the  motor  ship  La  Merced,  capacity  38,000  cases,  and 
several  smaller  boats  for  towing  and  barging.  The  steamer 
Colonel  E.  L.  Drake  was  tendered  to  the  United  States  Gov- 
ernment in  May,  1917,  was  accepted  and  is  now  exclusively 
in  the  service  of  the  Government. 

There  were  added  to  the  sales  departments  in  1917  38 
new  sub-stations,  21  new  service  stations  and  206  autos  and 
auto  trucks. 

The  gross  production  of  crude  oil  from  the  company's 
wells  in  1917  was  18,286,588  barrels,  against  14,177,124  bar- 
rels in  1916,  a  gain  of  3,509,464  barrels,  or  a  daily  average 
gain  of  9,720  barrels,  equivalent  to  an  increase  of  23,74  per 
cent. 

The  total  crude  oil  runs  to  the  company  including  its  own 
production  for  1917  was  83,596  barrels  a  day,  against  75,944 
barrels  a  day  in  1916,  an  increase  of  7,652  barrels  a  day. 

The  company's  stocks  of  crude  oil  and  their  equivalent  as 
of  December  31,  1917,  were  15,101,696  barrels,  against  22,753,- 
178  barrels  on  December  31,  1916,  or  a  total  decrease  in  its 
stocks  of  7,651,482  barrels. 

The  total  value  of  all  sales  of  all  products,  both  foreign 
and  domestic,  for  the  year  1917  shows  an  increase  of  42.45 
per  cent  over  that  of  1916.  The  export  business  of  the  com- 
pany for  1917  showed  but  little  change  from  that  of  1916. 

The  company  paid  in  taxes,  exclusive  of  income  and  ex- 
cess profits  taxes,  during  the  year  1917  $1,416,399,  against 
$946,285  in  1916,  an  increase  of  49.68  per  cent. 

The  continued  shrinkage  includes  oil  stocks  in  California 
during  1917,  amounting  to  approximately  12,  300,000  barrels, 
representing  an  increased  demand,  rather  than  a  decline  in 
output,  as  production  was  fairly  constant  during  the  year, 
brought  about  higher  quotations  for  crude  oil,  the  base  price 
in   January,    1917,   of   73c  per   barrel   advancing  during  the 


standard  Oil  Company — Indiana 


87 


year  to  98c.  per  barrel.  While  crude  oil  was  demanding  the 
higher  price  mentioned,  the  price  of  gasolene  to  the  con- 
sumer remained  stationary  during  the  year. 

"The  growth  of  the  company's  business  as  evidenced  in 
1917,"  the  report  says,  "has  been  upon  the  most  healthy  basis 
and  is  shown  to  be  the  result  of  the  increase  in  population 
and  commercial  importance  of  the  territory  in  which  the 
company  naturally  does  business  and  not  a  consequence  of 
participation  in  war  business  which  would  have  been  reflected 
in  increased  export  sales." 

The  growth  of  the  company  in  earning  power  and  in 
physical  expansion  is  shown  in  the  following  table: — 

Piant  Acct.  Capital 
After  and 
Year       Earning:*      Kate    Dividends    Operation  Surplus 
V  1917.  .*$24,479,740    24.6%    $9,316,247  ii;80v979,929  t^ll4,645,688 
1916..     17,605,304     23.6%      6,831,915     72,010,645  105,312,307 
1915..       9,529,946     19.8%      4,968,666     65,834,282  94,538,928 
1914..     10,058,338     20.2%      4,856,098     65,415,338  89,977,673 
1913..     10,911,481     24.0%      4,493,399     58,933,865  80,272,736 
1912..       7,106,156     15.8%      1,123,359     38,431,750  65,129,996 


*Before  deducting  $5,830,116  for  War  Taxes. 
tAfter  deducting  War  Tax  Reserve. 

On  December  31,  1911,  net  assets  were  $39,213,195  and  on 
December  31,  1917,  net  assets  were  $114,645,688,  showing  a 
gain  of  $75,432,493  or  192  per  cent,  in  the  six  year  period. 

The  company's  sales  showed  a  growth  in  value  of  42.45 
per  cent,  over  1916,  which  year  in  turn  had  shown  a  growth 
of  45  per  cent,  over  1915.  This  showing  in  the  face  of  the 
standstill  imposed  upon  its  export  trade  by  war  conditions 
indicates  the  sustained  prosperity  in  view  for  the  company. 
Officers  and  Directors — 

President — W.   R.  Rheem. 
Senior  Vice-President — K.  K.  Kingsbury. 
Vice-President — W.   S,  Miller. 
Vice-President  and  Director  of  Producing — 

P.  H.  Hillman. 
Treasurer  and  Director  of  Mfg. — R.  J.  Hanna. 
Sec'y  and  Director  of  Pipe  Lines — H.  M.  Storey. 
Main  Office' — Standard  Oil  Co.  Bldg.,  San  Francisco,  Cal. 
Transfer  Offices — Equitable   Trust    Co.  ,   New    Yo^k,^  and 
company'^  offices,   San  Francisco. 

Annual  Meeting: — February   20th,   Richmond,  Cal. 


STANDARD  OIL  COMPANY  (Indiana) 

The  Standard  Oil  Company  (Indiana)  was  incorporated  in 
1889. 

Capital  Stock — Authorized,  $100,000,000;  outstanding,  $30,- 
000,000;  par  value,  $100.  The  capital  stock  was  originally 
$500,000,  having  been  increased  to  $1,000,000  in  1892.  In 
March,  1912,  the  stockholders  approved  the  increase  in  stock 
from  $1,000,000  to  $30,000,000  by  the  payment  of  a  2900-per 
cent,  dividend  in  capital  stock,  which  was  distributed  on 
May  15,  1912.  On  March  1,  1917,  the  stockholders  approved 
an  increase  of  the  capital  stock  to  $100,000,000  and  voted  to 
amend  the  company's  charter  so  that  it  could  engage  in  the 
business  of  producing  crude  oil  and  transporting  oil  and  its  by- 
product by  pipe  line,  ships  and  tank  cars.  No  announcement 
has  been  made  as  to  when  or  how  the  capital  will  be  in- 
creased. 


88 


Standard  Oil  Company — Indiana 


Dividends — Since  the  dissolution,  dividends  have  been  de- 
clared payable  as  follows: 


1918- 

-May  31 

6% 

31,800,000 

1915- 

-Feb  28 

3% 

$900,000 

Feb  28 

6% 

1,800,000 

1914- 

-Nov  30 

6% 

1,800,000 

1917- 

—Nov  30 

6% 

1,800,000 

Aug  31 

6% 

1,800,000 

Aug  31 

6% 

1,800,000 

May  29 

6% 

1,800,000 

May  31 

6% 

1,800,000 

Feb  28 

7% 

2,100,000 

Feb  28 

6% 

1,800,000 

1S13- 

-Nov  29 

12% 

3,600,000 

1916- 

3% 

900,000 

Aug  31 

7% 

2,100,000 

Aug  31 

3% 

900,000 

May  31 

6% 

1,800,000 

May  31 

3% 

900,000 

Feb  28 

7% 

2,100,000 

Feb  28 

3% 

900,000 

1912- 

-Nov  30 

10% 

3,000,000 

1915- 

—Nov  30 

3% 

900,000 

Aug  31 

3% 

900,000 

Aug  31 

3% 

900,000 

May  15 

2,900%  Slk.Div. 

May  31 

3% 

900,000 

Total  Dividends  since  the 

Disso] 

$39,000,000 

Properties — The  company  owns  and  operates  refineries  at 
Whiting,  Ind. ;  Sugar  Creek,  Mo.;  Alton,  111.;  Casper,  Wyo., 
and  GreybuU,  Wyo.,  each  of  which  is  connected  with  exten- 
sive pipe  line  systems.  The  company  is  building  a  sixth  re- 
finery at  AVichita,  Kan.,  which  is  adjacent  to  its  newly  ac- 
quired producing  properties  in  the  Butler  County  (Kan. )  fields. 
The  refinery  at  Whiting  is  within  a  short  distance  of  Chicago 
and  Lake  Michigan,  and  is  regarded  as  one  of  the  largest 
and  most  modern  plants  in  the  world.  The  plant  is  com- 
pletely equipped  for  the  production  of  every  product  deriv- 
able from  crude  oil,  and  the  buildings  occupy  nearly  400 
acres  of  land.  The  capacity  of  the  plant,  which  includes  92 
crude  stills  and  200  Burton  process  pressure  stills,  is  about 
60,000  barrels  of  crude  daily. 

The  refinery  at  Wood  River,  Illinois,  near  upper  Alton,  on 
the  Mississippi  River,  is  said  to  be  one  of  the  most  modern 
refineries  in  this  country.  The  plant  had  originally  sixteen 
1,000-barrels  stills,  but  there  were  added  between  1913  and 
1916  more  than  100  additional  stills  for  the  production  of 
motor  spirit.  The  plant  occupies  about  400  acres  of  ground, 
and  additional  land  has  recently  been  purchased  to  provide 
a  frontage  on  the  river.  The  capacity  is  40,000  barrels  of 
refined  product  daily.  The  company  has  added  extensive 
improvements  recently  to  enlarge  the  capacity  of  this  plant 
for  the  refining  of  Oklahoma  oil. 

The  Sugar  Creek  Refinery  is  located  near  Kansas  City. 
The  plant  covers  about  115  acres,  has  a  capacity  of  li,000  bar- 
rels and  specializes  in  gasolene,  motor  spirits  and  fuel  oil. 
Efforts  to  oust  the  company  from  operating  in  Missouri  were 
successfully  resisted  in  June,  1913,  and  with  the  suspension  of 
the  Supreme  Court's  writ  of  ouster,  the  management  announced 
that  $1,000,000  would  be  spent  in  enlarging  the  Sugar  Creek 
refinery  and  $500,000  more  in  building  up  marketing  stations 
throughout  the  state. 

The  company  also  has  built  a  $1,000,000  refinery  at  Casper, 
Wyo.,  adjacent  to  the  Salt  Creek  and  Big  Muddy  oil  fields, 
where  seventy  stills  are  now  in  operation.  Sixty  of  these  are 
devoted  to  the  manufacture  of  motor  spirits,  the  company's 
new  substitute  for  gasolene,  and  ten  of  them  to  make  petro- 
leum coke,  a  by-product  from  refinery  waste  used  to  make 
electric  carbons.  The  company  has  a  contract  with  the  Mid- 
west Refining  Company  to  supply  it  with  crude  oil  and  dis- 
tillate. The  refinery  at  Greybull,  Wyo.,  completed  during 
1917,  consists  entirely  of  Burton  pressure  stills  operated  on 
distillate  furnished  by  the  adjacent  plant  of  the  Midwest 
Refining  Company. 


standard  Oil  Company — Indiana 


89 


During-  1918,  the  company  arranged  through  the  Chamber 
of  Commerce  of  Wichita,  Kan.,  to  build  a  $1,000,000  refining 
plant  to  operate  on  crude  oil  from  the  nearby  and  prolific 
Butler  County  oil  fields. 

During  August,  1917,  the  company  purchased  for  $1,500,000 
the  producing-  properties  in  Butler,  Chautauqua  and  Mont- 
g-omery  counties,  Kansas,  of  John  A.  Bell,  Jr.,  and  associates. 
Commenting  on  the  purchase,  Vice-President  Drake  said  it 
was  the  forerunner  of  further  acquisitions  as  favorable  op- 
portunities offered.  Before  consummating  the  purchase,  the 
company  obtained  legal  authorization  from  the  State  of 
Kansas  to  engage  in  the  business  of  oil  production. 

Since  February,  1913,  the  company  has  had  an  enormous 
growth  in  business  through  the  installation  at  its  refineries 
of  a  new  process  for  cracking  oil  by  which  a  high  per- 
centage of  gasolene  is  obtained. 

The  process,  which  was  devised  by  Dr.  Wm.  M.  Burton, 
one  of  the  company's  directors,  has  opened  the  way  for  break- 
ing up  the  hydro-carbons  of  petroleum  into  whatever  com- 
bination is  needed  and  condensing  them  under  compression. 

In  the  process,  the  vapor,  instead  of  passing  into  con- 
densers, as  previously,  is  subjected  to  high  temperature  under 
a  pressure  of  eighty  pounds  to  the  square  inch.  Since  the 
Installation  of  these  pressure  stills,  the  company  now  runs 
the  oil  from  its  crude  stills,  which  formerly  was  used  for 
fuel  oil,  through  the  Burton  stills  and  obtains  a  high  yield  of 
low  gravity  gasolene,  which  undergoes  a  sweetening  process 
and  is  then  mixed  with  the  first  run  gasolene. 

Since  the  dissolution.  Standard  Oil  Company,  Indiana,  ha.« 
expended  more  than  $20,000,000  in  refinery  expansion  and  in 
building  up  its  marketing  service.  Through  its  Burton  Pro- 
cess stills,  it  has  become  the  leading  manufacturer  of  tht 
world  in  the  gasolene  field,  the  present  output  of  motor  fue^ 
from  its  five  refineries  being  above  1,500,000  gallons  a  day. 
During  1917  the  company  produced  and  marketed  500,000,000 
gallons  of  gasolene  or  about  25  per  cent,  of  the  total  output 
of  the  country. 

An  officer  of  the  company  testified  recently  before  tht 
Federal  Trade  Commission  that  the  company's  gasolene  out 
put  was  running  20,000  barrels  monthly  below  its  marketing? 
demands. 

The  Standard  Oil  Company,  Indiana,  maintains  an  ex- 
tensive marketing  organization,  and  has  stations  throughout 
Indiana,  Michigan,  Illinois,  "Wisconsin,  Minnesota,  Iowa,  North 
and  South  Dakota,  Kansas  and  Missouri.  The  company  con- 
trols about  50  per  cent,  of  the  business  of  this  territory  in  the 
face  of  the  keenest  competition  from  nearly  100  refineries  in 
the  Mid-Continent  field. 

In  addition  to  its  enormous  gasolene  business  the  com- 
pany turns  out  nearly  every  by-product  of  crude  oil.  It  ha!» 
the  largest  candle  works  in  the  country,  outside  of  the  Prn* 
Works  of  the  Standard  Oil  Company  of  New  York.  Its  wax 
business  has  been  particularly  heavy  since  the  outbreak  of 
the  war.  During  1917,  the  company  purchased  the  Karpen 
Building,  one  of  the  largest  office  buildings  in  Michigan 
Boulevard  on  the  Chicago  lake  front.  This  investment  is  re- 
flected in  the  increase  in  the  "Real  Estate  item"  in  its  1917 
balance  sheet  and  also  in  the  appearance  of  $438,500  of  First 
Mortgage  bonds,  which  were  outstanding  on  the  property 
when  acquired. 

Another  source  of  profit  to  the  company  Is  its  royalties 
from  leasing  the  rights  to  use  the  Burton  process.  Standard 
Oil  of  Kansas.  Imperial  Oil  Company,  Solar  Refining,  Tide- 
water Oil  Company.   Standard  Oil  Company  of  New  Jersey 


90 


Standard  Oil  Company — Indiana 


and  Continental  Oil  Company,  are  now  lessees  of  the  process. 

The  company's  balance  sheet  as  of  December  31,  1917, 
compares  with  the  previous  year  as  foll(5ws: — 


Assets:  1917  1916  Change 

Real  Estate   $6,856,708  $4,220,743  +  $2,635,965 

Construction    *39,187,196  28,642,318  -[-  10,544,878 

Personal  Property    7,609,043  4,555,575  -f  3,053,468 

Accounts  Receivable   9,261,156  6,917,147  +  3,344,009 

Secur.  &  Other  Invest..  18,043,643  13,142,028  -f  4,901,615 

Merchandise   41,417,364  25,588,088  -f  15.879,276 

Cash    4,559,607  3,399,092  +  1,160,515 


Total  Assets   $126,934,717  $86,414,991  $40,519,726 

Liabilities: 

Capital  Stock                      $30,000,000  $30,000,000   

First  Mortgage  Bonds..         438,500    +  $438,500 

Accounts  Payable                   6,650,629  3,178,334  -j-  3,472,295 

Surplus                                 t89,845,588  53,236,657  +  36,608,931 


Total  Liabilities   $126,934,717    $86,414,991  $40,519,726 


♦Construction   figures  are  arrived   at  after  allowing  $12,- 

474,132  for  accrued  depreciation. 
tBefore  providing  $17,000,000  for  War  Taxes. 
The  company  does  not  furnish  an  Income  Account  but  the 
increase  to  surplus  of  $36,608,931,  after  dividends  of  $7,200,000 
indicates  earnings  (after  depreciation  of  $2,008,925)  of  $43,- 
808,931,  or  at  the  rate  of  $146  a  share.  This  compares  with 
earnings  of  $100  a  share  in  1916.  After  providing  $17,000,000 
or  $56.66  a  share  for  War  Taxes,  the  company  had  $89.36  a 
share  available  for  dividends.  The  year  was  in  all  respects 
the  most  notable  in  the  company's  history. 

The  expansion  in  the  company's  business  during  the  year 
is  revealed  by  an  increase  of  over  $40,500,000  in  assets,  or 
nearly  47  per  cent.  Inventory  increased  $15,879,276  in  value 
and  the  construction  account  shows  an  addition  of  $10,544,778 
to  plant.  Working  capital  at  the  close  of  the  year  was 
$66,631,141,  an  increase  of  $20,813,119  during  the  year. 

The  growth  of  the  company  in  earning  power  and  equip- 
ment is  shown  in  the  following  table: — 


Real  Estate  Book 

Earning:s  Kate      and  Plant  Surplus  Value 

1917             $43,808,931  146%  *$53,652,947  $89,845,588  t$342.82 

1916               30,043,376  100%      37,418,635  53,236,657  277.45 

1915               15,898,376  53%      30,044,154  26,793,042  189.31 

1914                 6,590,924  21.9%      25,340,612  14,394,666  147.94 

1913               14,687,696  48.9%      21,698,423  15,303,742  151.01 

1912             ±10,500,000  35%      19,133,445  10,216,046  134.05 


*After  $12,474,132  accrued  depreciation.     jAfter  deducting 
$56.66  a  share  for  war  taxes.  ^Estimated. 

The  growth  in  plant  account  in  the  last  five  years  has 
been  $36,519,502  after  depreciation,  or  better  than  90  per 
cent.  As  a  result  of  ploughing  back  earnings  into  the  prop- 
erty, net  profits  have  increased  more  than  200  per  cent  and 
net  assets  increased  from  $40,216,046  on  December  31,  1912. 
to  $119,845,588  on  December  31,  1917,  a  gain  of  $79,629,542. 
The  average  earnings  over  the  last  five  years  have  been  74 
per  cent. 

The  Federal  Trade  Commission  in  May,  1918,  lodged  com- 
plaint against  the  company  for  alleged  violations  of  the  Clay- 
ton Act  or  the  Federal  Trade  Commission  Act.  The  charges 
relating  to  prices  and  methods  of  marketing  are  a  rehash 


standard  Oil  Company — Kansas 


91 


of  the  charges  set  forth  by  the  commission  early  in  1917  in 
its  report  on  gasolene  prices. 

Officers — President — W.  P.  Cowan. 

Vice-President — Lauren  J.  Drake. 

Secretary  and  Treasurer — G.  W.  Stahl. 

Asst.  Secretary  and  Treasurer — Charles  D.  Gano. 
Directors — W.  P.  Cowan,  L.  J.  Drake,  Alfred  D.  Eddy,  Geo. 

W.  Stahl,  Wm.  M.  Burton. 
Transfer  Office — 72  West  Adams  Street,  Chicago,  111. 
Annual  Meeting — First  Thursday  in  March. 


STANDARD  OIL  COMPANY  (Kansas) 

The  Standard  Oil  Company  of  Kansas  was  incorporated  In 
1892  under  the  laws  of  Kansas. 

Capital  Stock — The  capital  stock  is  $2,000,000.  Par  value, 
$100.  The  original  capital  was  $500,000,  which  was  increased 
in  1906  to  $1,000,000,  and  in  May,  1913,  to  $2,000,000. 


Dividends — Since  the  dissolution,  dividends  have  been  paid 
as  follows: — 


1918- 

— Jun  15 

6% 

$120,000 

1915 — Sep  15 

3% 

$60,000 
60,000 

Feb  28 

6% 

120,000 

Jun  15 

3% 

1917- 

—Dec  15 

9% 

180,000 

Feb  27 

3% 

60,000 

Sep  15 

5% 

100,000 

1914 — Jun  15 

3% 

60,000 

Jun  15 

5% 

10Q,000 

Feb  28 

10% 

200,000 

Feb  20 

5% 

100,000 

1913 — Nov  29 

13% 

260,000 

1916- 

—Dec  15 

5% 

100,000 
100,000 

Sep  15 

10% 

200,000 

Sep  15 

5% 

Jun  30 

100% 

Stk  Div. 

Jun  15 

3% 

60,000 

Jun  30 

10% 

100,000 

Feb  29 

3% 

60,000 

Feb  28 

7% 

70,000 

1915- 

—Dec  15 

3% 

'  60,000 

1912 — Dec  14 

5% 

50,000 

Total 

Dividends  since  the 

Dissolution  .  . 

$2,220,000 

In  November,  1916,  the  stockholders  approved  a  resolution 
to  amend  the  charter  of  the  company  to  enable  it  to  engage 
in  the  production  and  transportation  of  crude  oil,  and  in  No- 
vember, 1917,  it  obtained  legal  permission  from  the  State  of 
Kansas  to  engage  in  the  business  of  oil  production,  but  so  far 
it  has  not  acquired  producing  properties. 

Properties — The  company's  refinery  was  equipped  during 
1913  at  a  cost  of  f  500,000  with  twelve  high  pressure  stills  of 
the  new  tower  variety  for  the  manufacture  of  "motor  spirits" 
and  forty  stills  of  300-barrel  capacity. 

Late  in  1915,  the  company  began  the  erection  of  twenty- 
two  fire  stills  and  five  tar  stills  and  three  150-feet  cement 

smoke  stacks.  During  1916,  these  27  additional  stills  were 
brought  into  operation  to  help  relieve  the  gasolene  stringency, 
making  a  total  of  92,  of  which  60  are  under  the  Burton 
patents,  with  the  result  of  doubling  the  capacity  of  its  gaso- 
line production.  To  c(yiserve  its  basic  supplies,  the  company 
is  not  making  fuel  oil  for  the  market.  During  1917,  the  com- 
pany began  the  erection  of  twenty  additional  stills  to  keep  up 
with  its  growing  business.  The  plant,  including  refineries, 
storage  tanks,  acid  works,  mechanical  shop  and  pump  house 
and  clay  restoring  plant,  covers  fifty-six  acres.  The  construc- 
tion throughout  is  brick,  steel  and  concrete. 

The  company  manufactures  gasolene  and  naphthas,  motor 
spirits,  refined  oils,  gas  oil,  black  oils,  road  oils,  fuel  oil  and 
petroleum  coke.  The  company  had  been  disposing  of  Its 
products   on   contract   until   late   in    1914,    when    it  entered 


92 


Standard  Oil  Company — Kansas 


actively  into  competition  with  other  mid-continent  refineries 
for  the  local  jobbing  trade. 

The  company's  financial  statement  for  year  ending  De- 
cember, 1917,  compares  with  the  previous  year  as  follows: 

1917  1916  Changes 

Net  Profit                                $2,487,629  $1,270,313  +$1,217,316 

Reserve  for  Taxes                     1,064,647    -f  1,064,647 

Dividends   "                            480,000  240,000  +  240,000 

Balance  to  Surplus.  .      $942,982    $1,030,313    —  $87,331 

Net  profits  for  1917  increased  96  per  cent,  over  those  of 
the  previous  year  and  were  equal  to  124.38  per  cent,  on  the 
stock  before  deducting-  w^ar  taxes.  The  amount  available  for 
dividends,  after  allowing  $1,064,447  for  war  taxes,  was  equal 
to  71.15  per  cent,  on  the  company's  $2,000,000  capital  stock 
compared  with  63.51  per  cent,  in  1916  and  28.19  per  cent,  in 
1915. 

The  company's  balance  sheet  for  year  ending  December  31, 
1917,  compares  as  follows: 


Assets:  1917  1916  Changes 

Real  Estate  and  Plant   $2,306,948  $2,120,449  -f  $186,499 

Cash    731,841  520,586  -f  211,255 

Securities    1,269,034  615,564  -f  652,470 

Accounts  Receivable   1,339,138.  766,821  -f  572,317 

Inventories    1,663,9!28  1,078,158  -f  585,770 

Total   Assets   $7,310,889  $5,101,578  +$2,209,311 

Liiabilities : 

Capital  Stock    $2,000,000  $2,000,000   

Accounts  Payable    435,101  337,319  +  $97,782 

Depreciation  Reserve   449,476  345,576  +  103,900 

Tax   Reserve   1,064,647    +  1,064,647 

Surplus    3,361,665  2,418,683  +  924,982 


Total  Liabilities   $7,310,889    $5,101,578  +$2,209,311 

The  balance  sheet  shows  an  increase  of  $2,209,311  in  assets 
over  the  previous  year.  Noteworthy  increases  were  .$653,470 
in  Securities  owned,  $572,319  in  accounts  receivable  and 
$585,770  in  inventories.  Working  capital  at  December  31, 
1917,  amounted  to  $3,504,193,  compared  with  $2,643,810  at 
the  close  of  1916.  After  paying  $480,000  (24%)  in  dividends, 
the  company  increased  its  surplus  $942,982  and  increased  its 
book  value  from  $220.93  at  the  close  of  1916  to  $268.08  at  De- 
cember 31,  1917. 


The  company's  developments  since  the  dissolution  is  illus- 
trated comparatively  as  follows: 


Book 

Year 

Earnings 

Rat© 

Plant  , 

Surplus 

Value 

1917.  . 

.  $2,487,629 

124.3% 

*$2,306,948 

t$3,361,665 

$268.08 

1916  .  . 

.  1,270,313 

63.5% 

2,210,449 

2,418.683 

220.93 

1915.  . 

563,946 

28.1% 

1,490,033 

1,468,369 

173.41 

1914.  . 

33,218 

16.6% 

1,394,872 

1,144,423 

152.22 

1913.  . 

1,912,627 

95.6% 

1,102,092 

1,371,105 

168.,55 

1912.  . 

1,106.190 

$110.6% 

591,940 

1,088,479 

4:208.84 

*After  $449,476 

accrued 

depreciation. 

tAfter 

reserving 

$1,064,647  for  war  taxes.       $On  $1,000,000  capital. 


In  the  last  five  years  the  company  has  increased  its  plant 
account   by    $1,815,008    after    depreciation,    with    a  resultant 


standard  Oil  Company — Kentucky 


93 


heavy  increase  in  earning  capacity.  When  it  embarks  in  the 
producing-  business,  which  it  is  now  authorized  to  do,  the 
scope  of  its  earning  power  will  be  still  further  enlarged  and 
this  will  lead  inevitably  to  another  capital  adjustment. 

Net  assets  of  the  company  on  December  31,  1911,  were 
$1,032,289,  as  against  $5,361,665  on  December  31,  1917,  indi- 
cating an  average  yearly  growth  of  $721,562  in  book  value, 
after  dividends,  since  the  dissolution.  Omitting  the  two 
years,  1914  and  1915,  when  the  company  suffered  not  only 
from  the  stagnation  induced  by  th^  outbreak  of  the  war,  but 
also  through  a  radical  change  in  the  method  of  marketing  its 
products,  the  company  has  shown  average  earnings  in  four 
years  of  $1,694,185  or  at  the  rate  of  84  per  cent. 

Serving  a  territory  in  which  there  is  a  very  heavy  demand 
for  gasolene  and  lubricants  for  automobiles  and  farm  tractors 
and  with  ample  supplies  of  crude  oil  adjacent  to  its  plant, 
the  company  seems  reasonably  sure  of  maintaining  its  high 
earning  power. 

Officers — President — J.  C.  McDonald. 

Vice-President — Thomas  Black. 
Secretary  and  Treasurer — E.  A.  Warren. 

Directors — The  above-mentioned  officers  and  in  addition 
A.  S.  Hopkins  and  A.  L.  Morrison. 

Transfer  Office — Neodesha.  Kansas. 

Annual  Meeting — Second  Wednesday  in  May. 


STANDARD  OIL  COMPANY  (Kentucky) 

The  Standard  Oil  Company  of  Kentucky  was  incorporated 
in  1886  under  the  laws  of  Kentucky. 

Capital  Stock — $6,000,000;  par  value,  $100.  The  capital 
stock  was  originally  $600,000,  but  it  was  increased  to  $1,000,000 
in  1892.  In  December,  1913,  the  stockholders  voted  to  in- 
crease the  capitalization  from  $1,000,000  to  $3,000,000,  and  on 
February  1,  1917,  the  stockholders  again  voted  to  increase  the 
capital  from  $3,000,000  to  $6,000,000. 

In  connection  with  each  increase  in  capital  stock,  the  stock- 
holders were  awarded  a  cash  dividend  with  the  privilege  of 
accepting  new  stock  in  payhaent. 

Dividends — Since  the  dissolution  dividends  have  been  paid 
as  follows: 


1918- 

— Apr 

1 

3% 

$180,000 

1915 — Oct 

1 

4% 

$120,000 

Jan 

2 

3% 

180,000 

Jul 

2 

4% 

120,000 

1917- 

—Oct 

1 

3% 

180,000 

Apr 

1 

>4% 

120,000 

Jul 

2 

3% 

180,000 

Jan 

2 

4% 

120,000 

May 

1 

100% 

Stk.  Div 

1914 — Oct 

1 

4% 

120,000 

Apr 

2 

5% 

150,000 

Jul 

1 

5% 

150,000 

Jan 

2 

5% 

150,000 

Apr 

1 

5% 

150,000 

1916- 

—Oct 

1 

5% 

150,000 

Feb  14 

200% 

Stk.  Div. 

Jul 

1 

5% 

150,000 

Jan 

2 

50,000 

Apr 

1 

5% 

150,000 

1913 — Oct 

1 

5% 

50,000 

Jan 

2 

5% 

150,000 

Jul 

1 

5% 

50,000 

Total  Dividends  since  the 

dissolution 

$2,670,000 

Income  Tax  Notice — Of  the  100  per  cent,  dividend  paid 
May  1,  1917,  $1,382,334  is  declared  out  of  profits  earned  prior 
to  March  1,  1913,  and  the  remainder,  $1,617,666,  is  declared 
out  of  profits  earned  since  that  date. 

Properties — This  is  a  marketing  company,  operating  In 
southern  Indiana  and  Illinois  and  south  of  the  Ohio  River  and 
east  of  the  Mississippi.    At  the  time  of  its  organization,  the 


94 


Standard  Oil  Company — Kentucky 


company  purchased  the  various  plants  and  marketing  sta- 
tions of  the  Chess-Carley  Company  throughout  the  Southern 
States.  It  also  purchased  all  the  properties  of  the  Con- 
solidated Tank  Line  Company  in  1892.  The  company's  main 
distributing  stations  are  located  at  Louisville  and  Covington, 
Ky. ;  Birmingham,  Ala. ;  Jacksonville,  Fla. ;  Atlanta,  Ga., 
and  Jackson,  Miss. 

The  company  announced  late  in  1916,  the  purchase  of  a 
large  river  front  acreage  at  Louisville  and  the  approval  of 
plans  for  the  erection  of  a  refinery.  Construction  already  is 
under  way.  The  refinery  when  completed  will  cost  $1,000,000, 
employ  200  men  and  have  an  annual  output  of  500,000  barrels 
of  gasolene,  in  addition  to  other  by-products.  The  refinery 
will  operate  on  Kentucky  and  Oklahoma  crude  oils.  Com- 
pletion of  the  refinery  has  been  delayed  owing  to  difficulty 
in  obtaining  deliveries  of  material.  The  company  expects, 
however,  to  have  the  plant  completed  and  in  operation  by 
the  end  of  1918. 

Standard  Oil  Company  of  Kentucky's  financial  report  for 
1917  compares  as  follows: — 

1917             1916  1915 

Net  Profits                                 *$1,967,020    $3,068,598  $1,124,640 

Dividends                                       t660,000         600,000  480,000 


Surplus   $1,307,020    $1,468,598  $644,640 


*After  setting  aside  estimated   Federal   Income  and  War 

Tax   Reserve  of  $560,000. 
tin    addition,    the    company    distributed    a    100    per  cent 

stock  dividend  on  May  1,  1917. 
The   company   Balance    Sheet    as    of   December    31,  1917, 
compares  with  previous  year,   as  follows: — 

Assets                              1917  1916  Change 

Plant  Imp.  and  Equip...  $5,232,280  $3,524,003  +$1,708,277 

Merchandise   3,642,129  2,402,274  -j-  1,239,855 

Cash  Accts.   Receiv.  and 

Other    Investments....  3,318,570  3,553,854  —  235,284 


Total    Assets   $12,192,979  $9,480,131  +$2,712,848 

Liabilities:  1917  1916  Change 

Capital  Stock   $6,000,000  $3,000,000  +$3,000,000 

Accounts  Payable    1,771,109  .  1,116,767  +  654,342 

Reserve  Accrued  Deprec.  1,331,314  1,148,719  +  182,595 

Insurance   Funds   174,211  165,320  +  8,891 

Federal  Income  and  War 

Tax    Reserve   560,000    +  560,000 

Surplus   2,356,345  4,049,325  —  1,692,980 


Total    Liabilities.  .  .$12,192,979      $9,480,131  —$2,712,848 


The  above  earnings,  after  deducting  $560,000  as  an  al- 
lowance for  Federal  Income  and  War  Tax  Reserve,  a.re  equal 
to  32.78  per  cent,  earned  in  1917  on  $6,000,000  capital  stock 
outstanding  at  the  end  of  the  year  and  equal  to  65.56  per 
cent,  on  the  former  capitalization.  This  compares  with 
earnings  of  68.95  per  cent,  in  1916  and  37.4  per  cent,  in  1915 
on  $3,000,000  capital  stock  outstanding  in  those  years.  Book 
Value  of  the  stock  was  $142  a  share  on  December  31,  1917. 
The  balance  sheet  shows  a  large  increase  in  plant  account, 
presumably  representing  the  new  refinery  at  Louisville.  The 
company  apparently  enjoyed  a  large  increase  in  its  gross 
earnings  during  the  year  and  net  earnings  before  taxes  show 
a  'growth  of  25  per  cent,  over  the  previous  year. 


standard  Oil  Company — Nebraska  95 


The  company's  growth  since  the  dissolution  is  shown  com 
paratively  as  follows: 


Cash 

Net  Current 

Capital  & 

Earnings 

Dividends 

Assets 

Surplus 

1917.  .  .  , 

*$3,527,020 

$660,000 

$5,189,590 

*$8,356,345 

1916. . . « 

  2,068,598 

600,000 

4,839,361 

7,049,325 

1915,  , 

1,124,640 

480,000 

3,664,410 

5,580,727 

1914 

704,376 

470,000 

3,272,027 

4,936,086 

1913 

1,002,457 

100,000 

2,762,922 

4,701,710 

1912  

None 

2,008,749 

3,799,253 

*After  settinj^  asidQ  $500,000  for  war  taxes. 


Ofiicers — President — C.  T.  Colllngs. 

Vice-President — C.  H.  Stansbury. 
Secretary  and  Treasurer — Joseph  C.  Steidle. 
Assistant  Secretary — S.  W.  Coons. 

Directors — C.  T.  Collins,  C.  H.  Stansbury,  S.  W.  Coons, 
J.  C.  Steidle,  James  B.  Brown,  A.  K.  Whitelaw 
and  C.  G.  Middleton, 

Transfer  Office — 426  West  Bloom  Avenue.  Louiaville,  ,Ky. 

Annual  Meeting — First  Thursday  in  February, 


STANDARD  OIL  COMPANY  (Nebraska) 

The  Standard  Oil  Company  of  Nebraska  was  incorporated 
In  1906  under  the  laws  of  Nebraska. 

Capital  Stock — The  capital  stock  Is  $1,000,000,  having  been 
Increased  from  $800,000  in  1913,  to  which  amount  It  wa« 
Increased  from  $600,000  In  1912. 

Dividends — Dividends  have  been  declared  as  follows: 


1918- 

— Jun  20 

10% 

$100,000 

1914- 

— Jun  20 

10% 

$100,000 

1917- 

—Dec  20 

10% 

100,000 

1913- 

—Dec  20 

15% 

150,000 

Jun  20 

10% 

100,000 

Jun  20 

25%,- 

Stk.  Div. 

1916- 

—Dec  20 

10% 

100,000 

Jun  20 

15% 

120,000 
80,000 

Jun  20 

10% 

100,000 

1912- 

—Dec  20 

10% 

1915- 

—Dec  20 

10% 

100,000 

Jun  20 

10% 

80,000 

Jan  20 

10% 

100,000 

Apr  15 

33  1-3% 

Sk.Div. 

1914- 

—Dec  20 

10% 

100,000 

Total  Dividends  since  the  Dissolution   $1,330,000 


Properties^ — This  is  exclusively  a  marketing  company,  oper- 
ating more  than   130   distributing  stations  in  Nebraska.  It 
handles    the    products    of    Standard    Oil    Company,  inairft, 
Standard    Oil    Company,    Kansas,    and   the   Midwest  Refining 
Company,  of  Casper,  Wyoming. 

No  statement  of  earnings  has  been  issued,  but  the  Federal 
Trade  Commission  reports  that  in  1915,  the  company  earned 
$561,914,  or  at  the  rate  of  56.19  per  cent.  On  December  31, 
1915,  the  company  had  a  canital  and  surplus  of  $1,858,707. 
As  later  earnings  were  at  a  higher  rate,  the  company  prob- 
ably has  a  book  value  around  $2,500,000. 

Officers — President — A.  H.  Richardson.  I 
Vice-President — George  M.  Smith. 
Secretary — H.  L.  AUeman. 
Assistant  Secretary — Jas.  A.  Gilmore. 
Treasurer — R.   C.  Mcintosh. 

Transfer  Office — Brandeis  Building,  Omaha,  Nebraska. 

Annual  Meeting — First  Monday  in  January. 


96 


Standaid  Oil  Company  of  New  Jersey 


STANDARD  OIL  COMPANY  of  New  Jersey 
(Reorganized  Company) 

In  accordance  with  the  decision  of  the  United  States 
Supreme  Court  rendered  on  May  15,  1911,  the  Standard  Oil 
Company  of  New  Jersey  divested  itself  of  the  centrol  oi 
thirty-three  subsidiary  companies  which  previously  had  h^^t^r 
closely  affiliated  through  co-ordinate  trade  relations.  The 
re-organization  took  effect  as  of  December  11,  1911. 

Capital  Stock — The  capital  stock  of  the  re-organized  com- 
pany is  $100,000,000,  ©f  which  $98,338,300  is  outstanding.  PaT 
value.  $100. 

Dividends — Since  re-organization,  dividends  have  been  de- 
clared and  paid  as  follows: — 


1918- 

— Jun  15 

5% 

$4,916,919 

1914- 

— Dec  15 

5% 

$4,916,919 

Maris 

5% 

4,916,919 

Sep  15 

5% 

4,916,919 

-1917- 

—Dec  15 

5% 

4,916,919 

Jun  15 

5% 

4,916,919 

Sep  15 

5% 

4,916,919 

Mar  15 

5% 

4,916,919 

Jun  15 

5% 

4,916,919 

1913- 

—Dec  15 

5% 

4,916,919 

Mario 

5% 

4,916,919 

Sep  15 

5% 

4,9164)19 

1916- 

—Dec  15 

5% 

4,916,919 

Jun  15 

5% 

4,916,919 

Sep  15 

5% 

4,916,919 

Mar  15 

5% 

4,916,919 

Jun  15 

5% 

4,916,919 

Feb  15 

40% 

39,335,352 

Mar  1 5 

5  7o 

4,916,919 

191'2- 

—Dec  15 

5% 

4,916,919 

1915- 

-Dec  15 

5% 

4,916,919 

Sep  15 

5% 

4,916,919 

Sep  15 

5% 

4,916,919 

Jun  15 

5% 

4,916,919 

Jun  15 

5% 

4,916,919 

Marl5 

5% 

4,916,919 

Mar  15 

5% 

4,916,919 

1911- 

—Dec  15 

7% 

6,883,686 

Total  : 

Dividends  since 

.  .  .  $174,058,932 

The  special  distribution  of  $40  per  share  resulted  from  the 
accumulation  of  funds  due  to  the  settlement  of  loans  made 
to  the  various  former  subsidiaries  prior  to  dissolution. 

Properties — By  virtue  of  the  broad  character  of  its  charter, 
the  Standard  Oil  Company  of  New  Jersey  is  naturally  a  hold- 
ing company,  while  its  diversified  functions  In  operations  con- 
stitute It  a  complete  cycle  In  the  industry,  being  a  producer, 
refiner  and  transporter,  as  well  as  marketer  of  crude  oil  and 
its  products  In  all  parts  of  the  world. 

Business — With  the  inauguration  of  its  policy  of  industrial 
democracy  in  its  plants,  the  company  began  the  publication 
of  a  house  organ  called  "The  Lamp."  In  the  first  issue,  of 
May,  1918,  the  company  asked  and  answered  the  question 
"What  is  the  Standard  Oil  Company?"  in  the  following  com- 
prehensive manner: 

"The  Standard  Oil  Company! 

"What  volumes  of  romance  have  been  written  around  and 
about  that  name!  What  reams  of  colorful  fiction  the  mere 
mention  of  it  can  inspire!  With  what  transcendent  sagacity 
It  has  been  endowed  by  a  hundred  historians,  and  wl'at  would 
be  the  monumental  range  of  its  activities,  and  the  complete- 
ness of  its  control  of  all  forms  of  modern  industry  if  the  old 
time  newspaper  paragrapher  were  always  right.  There  was 
for  many  years  no  enterprise  too  obscure,  no  undertaking  too 
great,  to  be  immune  from  the  suggestion  of  Standard  Oil 
auspices.  One  h?.s  but  to  consult  the  veracious  chroniclers  of 
the  past  to  discover  in  the  development  of  dairy  lunch  sys- 
tems, the  financing  of  fantastic  patents,  the  creation  of  bank- 
ing trusts,  the  success  of  a  popular  chewing  gum  or  the  down- 
fall of  a  political  party,  the  dominant  hand  and  mind  of  the 
Standard  Oil. 

"When  a  man  on  the  street  said,  'The  Standard  Oil  people 
are  in  this,'  he  was  probably  honestly  retailing  what  he  heard 


standard  Oil  Company  of  New  Jersey 


97 


from  some  one  who  didn't  know.  When  a  newspaper  story 
went  on  to  say,  'It  is  well  known  that  the  Standard  Oil  Com- 
pany is  behind  the  project,'  it  meant  probably  that  there  was 
no  one  else  handy  to  blame,  and  anyway  the  use  of  the  name 
made  the  story  look  important. 

"The  times  are  changing  more  rapidly  than  most  of  us 
realize,  and  as  knowledg-e  spreads,  many  illusions  and  miscon- 
ceptions of  the  misty  past  are  dissipated.  It  is  quite  possible, 
however,  that  some  readers  of  The  Lamp — the  employees  of 
the  Standard  Oil  of  New  Jersey — are  not  informed  as  to  the 
scope  of  our  operations,  and  for  their  benefit  a  word  or  two 
of  the  activities  of  the  company  may  be  in  order  just  here. 

"The  dissolution  of  the  Standard  Oil  Company  left  the 
Standard  Oil  Company  of  New  Jersey,*  a  manufacturing  enter- 
prise, with  a  large  foreign  business.  The  company  drills  oil 
wells,  pumps  them,  refines  the  crude  oil  into  many  forms  and 
sells  the  product — mostly  abroad.  It  does  nothing  else.  It 
has  8,000  stockholders,  and  among  them  are  many  prominent 
in  important  enterprises.  The  company  itself  is  only  con- 
cerned in  the  oil  and  natural  gas  business.  The  producing 
end  of  this  business  is  carried  on  through  its  subsidiary,  the 
Carter  Oil  Company.  This  company,  however,  furnishes  only 
a  limited  proportion  of  the  crude  Which  is  run  through  the 
company's  refineries,  the  balance  being-  purchased  from  day 
to  day  in  the  open  market  being  produced  by  thousands  of 
other  oil  operators.  From  the  producing-  fields  the  oil  is 
transported  by  means  of  pipe  lines  across  the  continent  to  the 
company's  interior  refinery,  or  to  the  refineries  at  the  Atlantic 
seaboard  in  the  neighborhood  of  Bayonne  and  Baltimore. 

"The  company's  position  in  respect  to  the  pipe  lines,  how- 
ever, is  the  same  as  its  position  in  respect  to  the  railroads, 
that  of  a  shipper.  The  company's  refinery  in  Mexico  is  of 
course  supplied  from  the  Mexican  field,  and  in  addition,  large 
quantities  of  crude  are  broug-ht  from  Mexico  to  the  New 
Jersey  refineries,  by  tank  steamers.  From  the  crude  thus 
received,  either  by  pipe  line  or  by  tank  steamer,  the  refineries 
manufacture  gasolene,  naphtha,  refined  oil,  fuel  or  gas  oil, 
road  oils,  lubricating  oils,  parafl?^in  oils  and  refined  wax  and 
many  other  commodities.  To  provide  containers  for  the  vari- 
ous products  which  it  produces,  the  company  operates  fac- 
tories for  the  manufacture  of  cases  and  cans,  and  wooden  and 
iron  barrels.  The  company  maintains  marketing  stations  at 
all  important  points  in  New  Jersey,  Maryland,  West  Virginia, 
Virg-inia,  North  and  South  Carolina,  and  the  District  of  Co- 
lumbia. The  selling-  end  of  the  business,  in  addition  to  pro- 
viding" for  the  needs  of  the  domestic  territory  is  largely  con- 
cerned with  the  foreign  trade  which  constitutes  an  important 
percentage  of  the  company's  business.  Importing  plants  and 
distributing-  stations  have  been  established  in  Europe,  South 
and  Central  America,  Porto  Rico,  Cuba  and  the  West  Indies. 

"For  its  foreign  and  domestic  business  the  company  has  at 
present  in  service  and  under  construction  in  this  country 
fifty-four  ocean-going  vessels  having-  a  total  dead  weight 
capacity  of  486,480  tons.  In  spite  of  some  considerable  losses 
through  enemy  attack  the  company's  vessels  constitute  the 
largest  individual  fleet  flying  the  American  flag.  The  total 
fleet  built  and  under  construction  in  American  yards  since  the 
outbreak  of  the  European  war  aggregates  twenty-four  steam- 
ers of  a  deadweight  capacity  of  286,100  tons. 

"But  the  most  valuable  possession  of  the  company  is  in- 
tangible— it  is  the  spirit  which  pulsates  throughout  the  organ- 
ization— the  mastery  of  business  detail  gained  by  the  intimate 
and  long  experience  of  the  veterans  in  its  service — the  great- 
est asset  is  in  short  the  oft-proved  loyalty  and  tested  capacity 
of   its  employees." 


98 


Standard  Oil  Company  of  New  Jersey 


Kefining:  Properties — The  company  directly  and  through 
subsldarles  operates  extensive  and  modern  refineries  In  the 
Western  Hemisphere  as  follows: 


Charging:  Capacity 


Location  (Barrels) 

Bayonne,  New  Jersey   45,000 

Bay  Way,  New  Jersey....   25,000 

Jersey  City,  New  Jersey   15,000 

Parkersburg-,    West   Virginia   2,500 

Baltimore,   Maryland    6,000 

Baton  Roug-e,   Looiisiana   40,000* 

Yale,  Oklahoma    25,000t 

Sarnia,  Canada    15,000 

Vancouver,  B.  C   4,500* 

Regina,   Canada    2,000* 

Halifax,  Nova  Scotia   2,000* 

Talara,  Peru    6,000* 

Tampico,  Mexico    10,000t 


Total  daily  charging  capacity   198,000 


♦When  extensions  under  way  are  completed. 
tUsed  only  as  a  Topping  Plant. 

At  its  Bay  Way,  N.  J.,  works  the  company  installed  dur- 
ing 1916  one  hundred  and  fifty  Burton  pressure  stills,  where- 
by it  has  increased  its  gasolene  output  1,500,000  barrels 
(50  gallons  capacity)  annually. 

In  addition  to  the  above,  the  company  operates  a  refinery 
In  Roumania,  where  its  subsidiary,  the  Romana-Americana, 
has  important  producing  properties.  The  company  also  oper- 
ates a  benzine  plant  at  Regensburg,  Germany. 

The  company  also,  through  a  group  of  foreign  subsidiaries, 
owns  storage  installations,  marketing  stations  and  equipment 
in  France,  Belgium,  The  Netherlands,  Scandinavia,  Germany, 
Roumania  and  Italy. 

Pipe  Line  Properties — In  order  to  supply  crude  oil  to  tts 
New  York  and  Baltimore  refineries,  the  company  owned  and 
operated  a  pipe  line  system  having  a  daily  capacity  of  nearly 
98,000  barrels.    These  pipe  lines  are  located  as  follows: 

1.  Extending  from  Centerbridge,  on  the  boundary  line  of 

New  Jersey  and  Pennsylvania,  to  the  Bay  Way  and 
Bayonne  refineries. 

2.  Extending  from  Unionville,  on  the  boundary  line  of  New 

York  and  New  Jersey,  via  Newfoundland  and  Saddle 
River,  N.  J.,  to  the  Bayonne  Refinery  and  the  Hudson 
River. 

3.  Extending  from  Fawn  Grove,  Pa.,  on  the  boundary  line 

of  Pennsylvania  and  Maryland,  to  the  Baltimore  re- 
finery. 

In  addition  to  the  above  lines,  there  is  also  a  short  pipe 
line  connecting  the  Bayonne  and  Jersey  City  refineries,  and 
five  lines  carrying  refined  oil  between  Bayonne  and  Bay  Way. 

Under  the  recent  decision  of  the  Supreme  Court  these  lines 
have  been  classed  as  common  carriers.  As  this  placed  con- 
trol of  these  operations  under  the  Interstate  Commerce  Com- 
mission it  was  deemed  advisable  to  turn  them  over  to 
separate  corporations.  Accordingly,  the  pipe  lines  extending 
from  Fawn  Grove,  Pa.,  to  Baltimore,  Md.,  have  been  sold  to 
the  Maryland  Pipe  Line  Company. ;  the  line  between  Bayonne 
and  Centerbridge,  Pa.,  has  been  sold  to  the  Tuscarora  Oil 
Company,  Ltd. ;  the  line  between  Unionville,  N.  Y.,  and  Sad- 


standard  Oil  Company  of  New  Jersey 


99 


die  River,  N.  J.,  which  branches  from  there  to  Bayonne,  N.  J., 
and  Hunter's  Point,  Long  Island,  has  been  sold  to  the  New 
York  Transit  Company. 

Marine  Properties — Befitting  its  premier  position  as  an 
international  marketing  organization,  the  company  operates 
the  largest  fleet  of  tank  ships  on  the  seas,  all  of  those  in 
active  service  at  the  present  time  flying  the  Stars  and  Stripes. 

The  dead-weight  tonnage  of  the  fleet  in  operation  is  486,480 
tons  and  there  are  under  construction  in  American  ship 
yards  for  future  delivery,  fifteen  additional  tankships. 

Lfi<oyd's  Register  for  1916-17  shows  the  following  bulk  oil 
astttl  case  oil  carriers  owned  by  Standard  Oil  Company  of 
New  Jersey: — 


Gross 

Vessel  Tonnage 

Ardmore   7,129 

Baton  Rouge    4,973 

Bayway    5,083 

Bradford    6,306 

Brindilla    4,171 

Caddo    6,329 

Caloria    4,093 

Charles  Pratt    9,059 

Communipaw    3,710 

Cashing    6,894 

Dawnlite    1,956 

Daylite    1,956 

Dayton    5,335 

De  Soto    6,268 

Gleupool    5.4.  9 

H.  H.  Rogers   10,900 

John   D.   Archbold...  8,374 

John   D.   Rockefeller.  8,374 

Matinicock   .  6,766 


Gross 

Vesasel  Tonnage 
Benjamin  Brewster.  .  5,605 

James  McGee   10,900 

W.  C.  Teagle   9,100 

S.  V.  Harkness   6,400 

Josiah  Macy    6,400 

P.  Q.  Barstow   10,900 

O.   B.   Jennings   10,90Q 

Pred.  W.  Weller   10,500 

A.  C.  Bedford   10,500 


Gross. 

Vessel  Tonnage 

Motuno    2,730 

Moonlite    1,956 

Mareni    4,045 

Muskogee    7,225 

Petrolite    3,710 

Pioneer    5,075 

Platuria    3,445 

Polarine    4,046 

Princeton    5,081 

Somerset    5,079 

Standard   10,073 

Starlite    1,956 

Sunlite    1,956 

Twilite    1,956 

William  Rockefeller.  .  10,900 

Wico    2,748 

Westoil    2,172 


Total   187,28© 


Gross. 

Vessel  Tonnage 

H.  M.  Flagler   8,374 

F.  D.  Asche....   8,374 

William  G.  Warden..  9,059 

W.   H.   Til  ford   5,605 

J.   A.   Bostwick   8,49P 

O.   T.  Waring   5,605 


Total    126,712 


Newly  L.aunched  or  Under  Construction 


Accessory  Plants — The  company  also  operates  a  Can  and 
Case  factory  which  has  a  capacity  of  6,000  cases  per  hour, 
each  case  containing  two  tin  cans  of  five  gallons  capacity 
each.  The  daily  output  of  this  factory  averages  60,000  cases 
containing  600,000  gallons  of  oil,  and  over  1,000,000  cases  per 
month,  which  are  exported. 

The  company  also  haa  in  operation  ai  auxiliaries  of  lt« 
business,  barrel  factories,  cooperage  plants,  canning  plants, 
glue  factories  and  pipe  shops. 


In  complying  with  the  decree  of  the  United  States  Supreme 
Court,  directing  a  dissolution  of  trust  relations,  the  company 
did  not  find  it  Imperative  to  dispose  of  all  of  Its  holdings  In 


100 


standard  Oil  Company  of  New  Jersey 


iubsidlary  companies.  Therefore,  the  securities  of  the  fol- 
lowing companies  are  retained,  as  Indicated  hereinafter: 


Total 

COMPANY 

Capital 

Owned  by 

Stock 

S.  O.  of  N.  J. 

American  Petroleum  Company  

$3,140,000 

51.3% 

Bedford  Petroleum  Company  

350,000 

99.3% 

Carter  Oil  Company  

*25,000,000 

100.0% 

Clarksburg  L.  &  H.  Company  

100.000 

51.0% 

Deutsch-American   Petroleum  Co... 

M9,000,000 

100.0% 

Gilbert  &  Barker  Mfg.  Company.... 

40,000 

100.0% 

Hazlewood  Oil  Company  

Hope  Natural  Gas  Company  

500.000 

106.0% 

**50,000,000 

80.0  % 

Imperial  Oil  Company,  Ltd  

28,547,280 

80.0% 

Interstate  Cooperage  Company.. 

200.000 

100.0% 

flnternational  Petroleum  Co.,  Ltd.. 

5,944,743 

100,000 

50.09^ 

Oklahoma  Pipe  Line  Company  

5,000,000 

100.0% 

Penna.  Lubricating  Company  

50,000 

60.0% 

Peoples'  Natural  Gas  Company  

1,000.000 

100.0% 

190,000 

52.6% 

5  000,000 

500.000 

Standard  Oil  Company  of  Brazil.... 

100.0% 

IJStandard  Oil  Company  of  Louisiana 

10,000,000 

100.0% 

Soc    Italian-American  Petroleum.... 

1,000.000 

60.0% 

Taylorstown  Natural  Gas  Company. 

10,000 

30.0% 

25.000 

98.8% 

3.000,000 

99.3% 

West  India  Oil  Refining  Company... 

300,000 

50.0% 

200.000 

50.6 

*Increased  from  $2,000,000  in  1917. 
Illncrcased  from  $5,000,000  in  1917. 
fSubsidiary  of  Imperial   Oil  Company, 
tr'nnitalization  doubled  out  of  1913  earnings. 
5Capital  increased  from   $100,000  in  .Tuly,  191  ?i 
**Authorized  capital  not  yet  distributed. 

This  shows  that  the  company  controls  subsidiaries  capital- 
ized at  over  $100,000,000. 

Among  the  forementioned  controlled  companies  are  seyeral 
possessing  valuable  properties  of  large  production.  Nine  of 
the  subsidiary  companies  are  foreign  and  the  balance  Ameri- 
can companies,  producing  crude  oil  and  natural  gas.  Standard 
Oil  of  New  Jersey  controls  ten  natural  gas  companies,  the 
stock  of  which  was  valued  at  $15,176,899  in  1906. 

The  company's  attorneys  recently  made  a  statement  be- 
fore the  Federal  Trade  Commission  that  one-fifth  of  the 
company's  net  profits  were  derived  from  its  natural  gas 
properties. 

Like  the  parent  company,  some  of  the  above-mentioned 
controlled  companies,  are  complete  cycles  in  the  oil  Industry. 
Among  the  important  companies  of  that  class  are  the  Imperial 
Oil  Company,  and  its  new  subsidiary,  the  International  Petro- 
leum Company,  Ltd. ;  Standard  Oil  Company  of  Louisiana, 
and  the  Romano- Americana  Oil  Company.  The  more  im- 
portant of  these  companies  are  described  in  detail  hereafter. 

Earnings — No  financial  statements  are  issued  by  the  com- 
pany  but   the   Federal   Trade   Commission   in   its   report  on 


standard  Oil  Company  of  New  Jersey 


101 


gasolene  (April,  1917)  gives  the  following  review  of  the 
company's  operations  during  1915: — 

Net   Profits,  1915  

Dividends    19,667,660 

Balance  to  Surplus   $31,923,909 

Capital  and  Surplus,  January  1,  1915   249,979,868 

Net  Assets,  January  1,   1916  $281,903,777 

Earnings  were  at  the  rate  of  52  per  cent,  on  the  $98,- 
338,383  capital  stock  outstanding,  or  at  the  rate  of  20.6  per 
cent,  on  the  company's  total  investment. 

As  1915  was  only  a  fairly  profitable  year  in  the  oil  In- 
dustry, it  may  be  inferred  conservatively  that  earnings  dur- 
ing 1916  were  on  a  higher  basis. 

An  interesting  comparison  may  be  found  by  referring  back 
to  the  figures  taken  off  by  the  government  experts  in  the 
dissolution  suit.  These  give  the  1906  earnings  of  the  old 
company  as  follows: 

Net  Profit,  own  business   $9,571,996 

Dividends  from  Subsidiary  Corporations   53,227,387 

Net  Increase  in  Book  Value  of  Corporate  Stocks 

Carried  as  Investment   20,322,869 

$83,122,252 

Dividends    39,335,320 

Carried  to  Surplus   $43,786,932 

In  the  eight-year  period  1899-1906  earnings  of  the  Stand- 
ard Oil  Company  of  New  Jersey  and  all  subsidiaries,  a,ver- 
aged  $51,000,000.  The  parent  company  has  therefore  reached 
in  five  years  of  independent  operation,  the  same  earning 
power  which  it  enjoyed  ten  years  previously  when  working 
as  a  unit  with  its  thirty-three  subsidiaries. 

General  Remarks — Standard  Oil  Company  of  New  Jersey's 
trade  activities  are  largely  international.  With  the  dissolu- 
tion, the  company  retained  for  its  domestic  marketing  terri- 
tory only  the  States  of  New  Jersey,  Delaware  and  Maryland 
and  through  its  L,ousiana  branch,  the  States  of  Louisiana, 
Arkansas  and  Mississippi.  Domestic  business  constitutes  only 
small  fraction  of  the  company's  enormous  operations.  In 
1915,  the  company  exported  179,982,931  gallons  of  gasolene,  or 
57  per  cent,  of  total  gasolene  exports  for  the  year. 

The  reason  for  this  abandonment  of  domestic  business  to 
Its  onetime  subsidiaries  had  its  basis  in  politico — economic 
conditions.  In  the  first  place  the  enormous  resources  of  the 
parent  company,  would  have  made  real  competition  with  its 
segregated  companies,  impossible  without  leading  to  the  ulti- 
mate extinction  of  the  latter  and  the  recreation  of  the  mo- 
nopoly, which  the  government  had  opposed.  In  the  second 
place,  the  parent  company  had  been  so  long  the  object  of 
aggressive  activity  by  those,  who  found  in  baiting  "big  busi- 
ness" ah  easy  avenue  to  political  preferment,  that  its  ac- 
tivities in  the  domestic  field  would  have  invited  continued 
hostility  from  the  same  sources.  The  directing  minds  of  the 
great  corporation,  whose  patriotism  is  on  a  par  with  their 
business  ability,  set  themselves  to  the  task  of  maintaining 
American  supremacy  in  the  oil  trade  of  the  world. 

At  the  outset  of  the  war,  the  company's  operations  were 
hampered  seriously  not  only  through  the  suspension  of  Its 


102 


Standard  Oil  Company  of  New  Jersey 


business  with  Germany  and  Belgiuni,  which  furnished  it  the 
largest  markets  for  its  illuminating  oil,  but  also  by  the  shut- 
ting off  of  its  largest  avenue  of  ocean  transportation  through 
the  enormous  fleet  of  tankers  operated  under  the  ownership 
of  its  German  subsidiary,  the  Deutsche-Amerikanische  Pe- 
troleum Gesellschaft,  This  fleet  consisted  of  forty  tankers, 
all  under  German  registry.  Through  the  amendment  to  our 
shipping  laws  passed  after  the  outbreak  of  hostilities,  it  was 
possible  to  transfer  all  of  these  vessels,  except  a  few  tied  up 
in  German  ports,  to  American  registry.  The  company  also 
was  hampered  by  British  interference  with  its  cargo  con- 
signments to  neutral  European  countries,  but  diplomatic  rep- 
resentations finally  effected  arrangements  to  obviate  further 
delays  and  thereafter  the  volume  of  the  company's  exports 
regained  normal  proportions. 

More  recently  the  company  suffered  severe  loss  through 
the  destruction  of  its  valuable  producing  properties,  refineries 
and  storage  tanks  in  the  Roumania  fields. 

Officers — Chairman — A.  C.  Bedford. 

President — W.  C.  Teagle. 
Vice-President — P.  W.  Weller. 
Vice-President — F.  H.  Bedford. 
Vice-President — F.   D.  Asche. 
Treasurer — S.   B.  Hunt. 
Secretary — Charles  T.  White. 
Assistant  Secretary — M.  H.  Eames. 

Directors — F.  D.  Asche,  A.  C.  Bedford,  F.  H.  Bedford,  S. 
B.  Hunt,  Walter  Jennings,  Henry  M.  Tilford,  O.  T.  Waring, 
F.  H.  Weller  and  George  H.  Jones. 

Transfer  Agent — Guaranty  Trust  Company,  New  York. 

Annual  Meeting — Second  Tuesday  in  January. 


The  principal  foreign  and  domestic  subsidiaries  of  the 
Standard  Oil  Company  of  New  Jersey  are  discribed  briefly  as 
follows: — 

Imperial  Oil  Company,  L.td. 

Capital,    $50,000,000.     Outstanding,  $28,547,280. 

The  original  capital  was  $1,000,000,  which  was  increased 
later  to  $6,000,000.  In  July,  1913.  the  capital  was  again 
raised  to  $15,000,000,  of  which  $11,000,000  was  issued,  and  the 
company  obtained  from  the  Dominion  of  Canada  an  amended 
charter  with  extremely  broad  powers. 

In  November,  1915,  the  stockholders  authorized  a  capita) 
Increase  to  $50,000,000,  to  put  the  company  in  position  to 
take  care  of  any  future  growth  in  its  business.  A  stock  divi- 
dend of  100  per  cent,  was  declared  in  December,  1915. 

Stockholders  of  record  December  14,  1917,  received  rights 
to  subscribe  at  par  to  December  27,  1917,  to  one  new  share 
for  every  five  held,  thus  increasing  the  outstanding  stock  on 
January  1,   1918,   to  $28,547,280. 

At  the  same  time,  it  was  announced  that  a  subsidiary 
company,  the  Imperial  Oil,  Ltd.,  had  been  incorporated  under 
the  Dominion  laws  with  a  capital  of  $50,000,000,  to  take  over 
the  refining  and  marketing  properties  of  the  parent  company. 
No  announcement  of  the  consummation  of  the  plan  has  been 
made,  but  it  is  intimated  that  the  parent  company  will  re- 
ceive and  distribute  the  new  stock,  share  for  share.  The 
company  owns  a  majority  of  the  stock  of  the  International 
Petroleum  Company.  Ltd. 


standard  Oil  Company  of  New  Jersey 


103 


Dividends — The  company  paid  12  per  cent,  annually  f>n  It? 
$11,000,000  capitalization  and  is  now  paying  4  per  cent,  semi- 
annually on  $28,547,280  on  March  1  and  September  1. 

Properties — When  its  Halifax  refinery  is  completed,  the 
company  will  be  operating-  four  refineries  in  British  North 
America,  one  on  the  Atlantic  seaboard  at  Halifax,  receiving 
crude  oil  by  tankship  from  Trinidad,  Mexico  and  the  United 
States  Gulf  Coast;  one  on  the  Pacific  Coast  at  Vancouver, 
receiving-  crude  oil  from  California  and  Peru;  one  at  Reg-ina, 
in  Saskatchewan,  to  supply  the  great  wheat-raising  country, 
and  one  at  Sarnia,  Ont.,  in  the  heart  of  Canada's  industrial 
section  and  adjacent  to  the  Great  Lakes.  The  company  also 
operates  a  topping  and  asphalt  plant  at  Montreal,  a  com- 
pounding and  marketing  station  at  Quebec,  and  is  considering 
the  erection  of  a  plant  at  Toronto.  With  the  completion  of 
the  Halifax  plant,  the  company  will  have  a  daily  refining 
capacity  of  25,000  barrels.  The  company  maintains  supply 
and  marketing  stations  throughout  the  Dominion. 

Oil  is  supplied  to  the  Sarnia  refinery  through  the  com- 
pany's subsidiary,  the  Imperial  Pipe  Line  Company,  Ltd., 
which  operates  an  8-inch  line,  155  miles  In  length,  from 
Sarnia  to  Cygnet,  Ohio,  where  it  connects  with  the  Buckeye 
Pipe  Line.  The  Vancouver  refinery  Is  supplied  with  crude  by 
the  International  Petroleum  Company,  Ltd.,  which  operates  a 
fleet  along  the  Pacific  Coast  from  its  Peruvian  field.  The 
new  refinery  at  Regina  is  supplied  by  oil  from  the  Montana 
and  Wyoming  fields.  Raw  material  for  the  new  Halifax  re- 
finery will  be  brought  in  tankships  from  Trinidad. 

The  Sarnia  refinery,  which  spreads  over  96  acres  has  been 
rebuilt  practically  in  the  last  three  years.  The  latest  addi- 
tions are  two  batteries,  each  containing  ten  pressure  stills  of 
the  Burton  variety  for  producing  motor  spirit.  These  stllla 
have  a  daily  capacity  of  6,000  barrels  daily. 

There  are  also  thirty-six  stills  of  7,000  barrels  capacity, 
twelve  of  the  old  type,  sixteen  modern  tower  stills,  four 
continuous  run  stills,  four  reducing  stills  and  four  tar  stills. 
The  refinery  also  operates  a  grease  factory,  wax  plant,  acid 
plant  and  candle  factory.  It  also  manufactures  its  own  cans, 
cases  and  barrels  and  has  a  boiler  shop  and  foundry  in  which 
It  constructs  its  own  tank  cars  and  storage  tanks.  The 
company's  employees  erected  entirely  the  large  and  modern 
ofl^ce  building  on  the  refinery  grounds.  Another  subsidiary, 
the  Perfection  Company,  manufactures  and  sells  Perfection 
oil  stoves. 

In  order  to  handle  its  growing  business  in  western  Canada, 
the  company  expended  $1,000,000  during  1915  in  com- 
pleting a  modern  refinery  and  shipping  station  at  Impoco  on 
Burrard  Inlet,  near  Vancouver,  B.  C.  There  is  deep  water  navi- 
gation and  rail  connection  to  the  plant.  This  plant  covert 
83  acres  and  is  now  operating  six  modern  stills  with  a  ca- 
pacity of  1,500  barrels  daily.  A  battery  of  ten  Burton  pres- 
sure stills  has  been  installed  giving  the  refinery  an  additional 
capacity  of  3,000  barrels  daily  and  largely  increasing  its  gaso- 
lene output. 

In  its  marketing  business,  the  company  operates  550 
marketing  stations  of  which  ten  are  bulk  storage  stations  lo- 
cated at  Sault  St.  Marie,  St.  Catherine's,  Toronto,  Montreal, 
Halifax,  Brockville,  Prince  Rupert  and  Impoco,  near  Van- 
couver. At  Fort  William  there  is  tankage  for  6,000,000  gal- 
lons and  at  West  Fort  for  550,000  gallons.  Three  steel  storage 
tanks  of  40,000  barrels  each  have  been  erected  recently  at 
the  Sarnia  plant  and  two  37,500  barrel  tanks  for  asphaltlc 
oils  and  a  large  gasolene  +ank  have  been  erected  at  Toronto. 


104 


Standard  Oil  Company  of  New  Jersey 


The  company  owns  and  operates  about  1,000  modern  tank 
cars  as  part  of  its  marketing  equipment. 

To  supply  its  trade  on  the  Great  Lakes  and  handle  the 
output  of  its  seaboard  refineries,  the  company  maintains  an 
extensive  fleet  of  tank  steamers  and  barges. 

The  gross  tonnage  in  operation  on  January  1,  1917,  was 
23,895  tons,   as  follows: — 

Vessel  Tonnage         Vessel  Tonnage 

Imperial   796.       Polarine    3,286 

Imperoyal   2,253i       Retlaw    4,061 

Impoco   2,25:        Royalite    2,300 

locolite   2,300        Sarnolite    2,300 

locoma   1,669        Talaralite    2,300 

Kaministique    2,773        Torontolite   2,300 

The  four  vessels  of  the  Sarnolite  class  are  250  feet  long, 
43  feet  beam  and  58  feet  moulded  depth,  the  dimensions 
permitting  their  use  as  ocean  going  vessels  and  also  making 
it  possible  for  them  to  pass  in  and  out  of  the  existing  canal 
system  between  the  Atlantic  and  the  Great  Lakes.  They  will 
carry  Trinidad  crude  to  the  Halifax  refinery  as  the  Imperoyal 
and  Impoco  are  now  carrying  Peruvian  oil  to  the  Vancouver 
refinery. 

As  the  company's  stock  is  not  in  the  hands  of  the  general 
public,  no  financial  statement  is  issued.  It  is  reported  that 
net  profits  in  1917  were  in  the  neighborhood  of  $16,000,000, 
a  result  that  can  be  ascribed  to  the  investment  of  $10,000,000 
in  plant  expansion  in  the  last  five  yeare. 

The  company  subscribed  $1,000,000  to  each  of  the  three 
recent  Canadian  war  loans. 

Officers — President — W.   H.  Hanna. 

Vice-President — J.  L.  Englehart. 
Vice-President — G.  W.  Mayer. 
Vice-President — C.  O.  Stillman. 
Secretary-Treasurer — W.  T.  McKee. 
Directors — The  above  and  A.  S.  Rogers,  J.  P.  Rogers,  "W.  C. 
Teagle,  G.  H.  Smith,  W.  W.  Oswald  and  T.  H.  Smallman. 
Registered  Offices — Sarnia,  Ontario,  Canada. 
Administration  Office — Dominion  Bank  Bldg.,  Toronto.  Can. 


Imperial  Oil,  Ltd. 

Chartered  December  14,  1917,  under  the  laws  of  the  Do- 
minion of  Canada. 

Capital  Stock — Authorized,  $50,000,000.     Par  value,  $100. 

Business — The  company  was  organized  "to  acquire  and 
take  over  as  a  going  concern  the  refining  of  petroleum  and 
the  business  of  marketing  petroleum  and  its  by-products  now 
carried  on  in  the  Dominion  of  Canada  and  Newfoundland 
under  the  style  or  name  of  The  Imperial  Oil  Company,  Ltd.," 
in  pursuance  of  a  formal  agreement  made  under  date  of  De- 
cember 11,  1917,  between  the  Imperial  Oil  Company,  Ltd.,  and 
A.  M.  McQueen,  as  trustee. 

The  charter  of  the  new  company  gives  it  very  wide  powers 
not  only  in  connection  with  the  business  of  refining  and 
marketing  petroleum  products,  but  in  the  way  of  investment 
of  surplus  funds,  the  holding  of  shares  in  other  companies 
and  in  dealing  in  and  operating  farm  and  other  properties. 
The  company  is  authorized  to  carry  on  its  business  "in  any 
province  of  the  Dominion  of  Canada  and  in  any  and  all  for- 
eign countries." 

Provisional  Dtrectors — Walter  Clarke  Teagle,  Charles  Or- 
rln  Stillman,  George  William  Mayer,  Gilead  Harrison  Smith, 
and  Hon.  W.  J.  Hanna. 

Corporate  Office — Dominion  Bank  Bldg.,  Toronto,  Ont. 


St^-ndard  Oil  Company  of  New  Jersey 


105 


International  Petroleum  Co.,  Ltd. 

Chartered  in  September,  1914,  under  the  laws  of  the  Do- 
minion of  Canada. 

Capitalization  Authorized         Issued  'Par 

Preference  Shares    £100,000  £100,000  £1 

Ordinary    Shares    3,900,000         1,151,525  1 

The  Preference  shares  are  not  redeemable  and  non-cumu- 
lative. They  enjoy  ^  preference  to  assests  in  liquidation  but 
the  Ordinary  shares  have  priority  as  to  dividend  up  to  6  per 
cent 

Dividends^ — An  initial  dividend  of  50  cents  a  share  was 
paid  January  28,  1918,  to  holders  of  share  warrants.  Divi- 
dends are  payable  at  the  Farmers'  Loan  &  Trust  Company, 
New  York  and  London,  or  the  Royal  Bank  of  Canada,  Toronto. 

Earnings — The  company  reported  to  the  Toronto  Stock 
Exchange  (in  October,  1917,)  net  profits  of  $905,614  for  the 
year  ended  December  31,  1917.  This  was  at  the  rate  of  15  ^/^ 
per  cent,  on  the  1,151,125  ordinary  shares  outstanding. 

The  company  reported  its  assets  as  follows: 


Property  Assets    .$6,223,600 

Other  Investments    346,000 

Inventories    1,942,000 

Accounts  Receivable   2,177,000 

Cash    498,000 


5^11,186,600 

The  balance  credited  to  profit  and  loss  for  the  year  was 
$905,614,  against  a  carry  over  of  $395,482  from  the  previous 
year. 

1  he  company  was  organized  as  a  subsidiary  of  the  Im- 
perial Oil  Company,  Ltd.,  to  take  over  the  producing  terri- 
tory, refining  and  transportation  properties  and  the  market- 
ing business  of  the  London  and  Pacific  Petroleum  Company, 
Ltd.,  and  the  Lagunitos  Oil  Company,  Ltd.,  both  English 
companies  operating  in  Peru. 

The  London  and  Pacific  Petroleum  Company  was  regis- 
tered in  London  in  1889  and  has  a  ninety-nine-year  lease  on 
extensive  tracts  of  oil  lands  adjacent  to  the  Port  of  Talara 
In  Peru,  where  its  refinery,  tank  farm  and  sea  loading  sta- 
tion is  located.  The  company  was  capitalized  for  £250,000 
preference  shares  and  £390,000  debentures  have  been  issued. 
The  company  paid  £200,000  in  preference  shares  and  royalties 
for  its  producing  lands.  Since  1912,  the  company  has  paid 
6  per  cent,  dividends.  The  latest  earnings  reported  were 
£11,978  in  1911  and  £51,832  after  deducting  £29,997  for  de- 
preciation in  1912. 

The  Lagunitos  Company  was  capitalized  for  £30,000  pref- 
erence shares  and  £220,000  common  shares  and  paid  the 
London  and  Pacific  £25,000  cash  and  £125,000  in  ordinary 
shares  for  a  concession  to  develop  certain  territory.  This 
company's  production  was  3,722  tons  in  1911,  14,706  tons  In 
1912  and  39,650  tons  in  1913.  Earnings  for  1913  showed  a 
surplus  of  £20,973  after  all  charges  out  of  which  a  special 
dividend  of  £18,484  was  distributed  among  the  preference 
shareholders. 

The  combined  companies  have  a  present  output  of  6,50(1 
barrels  daily  which  can  be  increased  greatly.  The  present 
refinery  of  the  company  has  a  charging  capacity  of  1,500 
barrels,  but  a  new  refinery  of  5,000  barrels  capacity  is  now 
under  construction.  With  the  completion  of  the  new  refinery 
the  company  will  be  able  to  supply  gasolene,  illuminating  oil 
and  lubricants  along  the  west  coast  of  South  America.  The 


106 


Standard  Oil  Company  of  New  Jersey 


company  has  also  built  up  a  successful  marketing  business  in 
fuel  oil  throughout  this  territory  in  which  coal  has  been  a 
scarce  commodity. 

The  company's  producing  properties  are  at  Negritos  and 
Talara.  Recent  development  of  the  company's  properties 
have  proven  up  a  large  acreage  and  a  force  of  expert  drillers 
has  been  recruited  in  Canada  to  work  in  the  Peruvian  fields 
during  1917.  It  is  possible  that  sufllcient  production  may  be 
developed  to  offset  the  rapidly  declining  production  of  lighter 
oils  in  California.  The  surplus  crude  oil  is  shipped  to  the 
Imperial  Oil  Company  refinery  at  Vancouver,  B,  C,  and  the 
Standard  Oil  Company,  California,  refinery  at  Richmond,  Cal. 
For  this  purpose  the  company  owns  several  large  tank  steam- 
ers and  has  others  under  charter.  The  vessels  which  it  owns 
are  the  "Azor,"  2,332  tons;  "Circassian  Prince,"  2,258  tons; 
"Liuz  Blanca,"  4,868  tons;  "Mina  Brea,"  4,145  tons. 

The  company's  refined  product  is  sold  through  distributing 
stations  at  Payta  and  Callao,  in  Peru,  and  Pisagua,  Iquique, 
Tocopilla,  Antofogasta,  and  Taltal,  in  Chile. 

Fear  that  the  earnings  of  the  company  would  be  affected 
by  the  intention  of  the  Peruvian  Government  to  levy  a  heavy 
export  tax  on  petroleum,  was  dissipated  in  November,  1915. 
when  the  tax  was  placed  at  one  shilling  a  ton. 

The  company's  stock  is  listed  upon  the  Toronto  Stock 
Exchange. 

Directors  and  Officers — W.  H.  Hanna,  President;  G.  H. 
Smith,  Vice-President;  J.  L.  Englehart,  W.  C.  Teagle,  Sir 
Edmund  Osier,  W.  Nesbitt;  Secretary,  H.  F.  Miller,  63  Bay 
Street,   Toronto,  Canada. 

Head  Office — Dominion  Bank  Bldg.,  Toronto,  Canada. 


Standard  Oil  Company,  Louisiana 

Capital,  $10,000,000.  Par,  $100.  All  owned  by  Standard 
Oil  Company  of  New  Jersey.  The  capital  was  $5,000,000, 
but  on  November  21,  1917,  the  shareholders  voted  to  increase 
it  by  a  stock  dividend. 

Incorporated  under  Louisiana  laws  to  carry  on  all  branches 
of  the  mineral  oil  business. 

The  company  has  a  modern  refinery  at  tidewater  above 
Baton  Rouge,  La.,  and  in  connection  with  it  an  extensive 
storage  and  shipping  station.  The  company  also  owns  an 
extensive  pipe  line  system,  and  operates  a  can  and  casing 
factory,  acid  plant  and  other  accessories  in  connection  with 
its  refinery. 

Within  the  past  three  years,  growing  importance  of  the 
Mid-Continent  and  Gulf  Coast  oil  fields  induced  the  parent 
company  to  enlarge  greatly  the  facilities  of  the  Louisiana 
company.  The  original  plant  represented  an  investment  of 
$2,500,000,  aside  from  the  pipe  lines.  Three  million  five  hun- 
dred thousand  dollars  was  appropriated  in  1914  for  extensions 
and  the  refinery,  through  the  addition  of  42  new  stills,  now 
has  a  charging  capacity  of  40,000  barrels  a  day.  The  Baton 
Rouge  plant,  tank  farms  and  deep  water  loading  station 
cover  several  hundred  acres  along  the  Mississippi  River. 

Oil  for  the  refinery  is  carried  through  the  company's  pipe 
line,  which  connects  at  the  Arkansas  border,  with  the  lines 
of  the  Prairie  Pipe  Line  Company,  through  that  State,  which 
In  turn  connect  at  the  Oklahoma  border  with  the  Oklahoma 
Pipe  Line,  owned  by  the  Standard  Oil  Company  of  New  Jer- 
sey, which  traverse  the  southeastern  oil  regions  of  Oklahoma 
and  connect  with  the  Prairie  lines  running  south  from 
Gushing. 


standard  Oil  Company  ot  New  Jersey 


107 


The  delivery  capacity  of  the  Oklahoma  and  Prairie  lines 
south  has  been  raised  by  recent  extensions  to  35,000  barrels 
a  day. 

The  Lousiana  lines  consisted  originally  of  an  8-inch  trunk 
line,  with  gathering  lines  throughout  the  Caddo  an-d  Red 
River  pools  in  northern  Louisiana,  The  8-inch  line  is  now 
being  looped  and  a  new  12-inch  trunk  line  is  being  laid.  As 
the  pipe  runs  through  marshy  ground,  it  is  being  set  in  solid 
cement  after  being  paraffined,  in  order  to  prevent  deteriora- 
tion. The  company  also  is  doubling  the  capacity  of  three  of 
its  seven  pumping  stations.  Tlie  company's  extensive  pipe 
line  system  is  now  capable  of  handling  75,000  barrdla  a  day. 

In  addition  to  its  great  tank  farm  at  Baton  Rouge,  the 
company  has  built  thirty  tanks  of  55,000  barrels  capacity 
each,  at  Oxford,  La.,  for  the  storage  of  Red  River  oil,  which 
Is  usable  only  for  fuel  and  lubrication. 

The  company  also  has  erected  at  Trees  City,  La.,  in  the 
Caddo  field,  a  plant  for  the  extraction  of  gasolene  from 
casinghead  gas. 

At  Bridge  Junction,  Ark.,  on  the  west  bank  of  the  Miss- 
issippi River,  opposite  Memphis,  Tenn.,  the  company  has 
erected  a  station  with  storage  capacity  for  2,500,000  barrels. 
Refined  and  fuel  oils  are  delivered  to  this  plant  from  Baton 
Rouge  in  the  company's  barges. 

The  company  is  also  among  the  largest  producers  of  crude 
oil  in  the  Louisiana  fields.  It  controls  extensive  acreage  in 
the  Caddo  and  Red  River  districts  and  acquired  in  1916 
$2,000,000  worth  of  leases  in  the  new  Crichton  field,  with 
4,000  barrels  of  production. 

The  company's  domestic  marketing  business  is  confined  to 
the  States  of  Louisiana,  Arkansas  and  Mississippi,  but  it  also 
supplies  large  quantities  of  refined  oils  to  the  Standard  Oil 
Company,  Kentucky,  and  other  marketing  concerns  operating 
in  the  Southern  and  lower  Atlantic  States. 

The  bulk  of  the  business,  however,  is  supplying  oils  for 
export  to  the  Standard  Oil  Company  of  New  Jersey. 

As  the  company's  stock  is  owned  entirely  by  Standard  Oil 
Company  of  New  Jersey,  no  financial  statements  are  issued 
but  the  Interstate  Commerce  Commission's  report  on  the 
Mid-Continent  pipe  line  systems,  showed  the  growth  of  the 
company  over  a  three-year  period.  Since  the  last  balance 
sheet  given  below,  the  company  has  expended  more  than 
$5,000,000  in  refinery  expansion  and  adding  to  its  producing 
properties.  The  following  financial  statements  are  illumin- 
ating:— 

Comparative  Balance  Sheets  as  of  December  31 
Assets:  1911  1912  1913 

Refinery    .  .  .*.   $3,976,259.77    $4,895,574.22  $5,364,819.27 

Sales    Dept   460,728.02         514,142.80  709,889.29 

Crude   Dept   2,721,879.41      3,012,020.90  4,406,608.82 

Producing    Dept   6,657,223.93      8,029,129.62  9,298,188.31 

Sundry    Property   447,393.95         447,508.58  610,649.64 

Inventory    1,921,102.78      2,827,057.84  3,519,794.15 

Bills   Receivable   274,909.20         427,123.45  889,431.98 

Accounts  Receivable.  352,660.69  435,341.20  440,441.98 
Cash    101,526.86         170,198.57  62,310.32 


Total  Assets   $15,913,684.61  $20,758,097.18  $25,302,133.76 


108 


Standard  Oil  Company  of  New  Jersey 


LiabUities:                1911  1912  1913 

Capital                            $5,000,000.00  $5,000,000.00 

$5,000,000.00 

Standard  Oil  Co.  (N. 

J.)   Loan  Account.     9,338,384.91  11,467,479.91  7,902,931.26 

Accounts  Payable...       543,578.96  557,088.87  773,560.68 

Depreciation                     1,000,000.00  2,040,106.17  2,485,021.81 

Profit  and  Loss                  31,302.30  1,693,422.23  9,140,620.01 


Total   Liabilities.. $15,913,684.61  $20,758,097.18  $25,302,133.76 

OflBcers  and  Directors — President — F.  W.  Weller. 

Vice-President — P.  H.  Bedford. 

Vice-President — P.  S.  Morris. 

Secretary  and  Treasurer — A.  K.  Gordon. 
Directors — The  above  and  D.  R.  Weller,  C.  O.  Scholder, 

A.  C.  Bedford,  J.  A.  Moffett,  Jr.  and  C.  K.  Clarke. 


Carter  Oil  Company 

Incorporated  in  Pennsylvania  in  1872  by  Col.  John  J. 
Carter.  Was  for  many  years  one  of  the  leading  producing 
companies  in  the  Appalachian  field  and  was  acquired  by 
Standard  Oil  Company  of  New  Jersey  in  1906. 

Capital  Stock — $25,000,000.  Par  value,  $100.  All  but  direc- 
tors' qualifying'  shares  are  owned  by  the  Standard  Oil  of  New 
Jersey.  The  capitalization  was  increased  from  $2,000,000  in 
October,  1917. 

Financial  Statement — As  the  company  operates  in  Kansas, 
where  it  has  an  investment  of  upwards  of  $5,000,000,  it  has 
reported  on  its  financial  status  as  of  December  31,  1917, 
showing-  capital  and  surplus  of  $38,098,605. 

The  company  reported  its  quick  assets  as  follows: — 


Assets 

Oil  on  Hand   $22,068,647 

Accounts   Receivable   1,720,421 

Cash   14,773 


Total  Current  Assets   $23,803,841 

Total  Capital  Assets   24,252,345 


$48,056,186 

Liabilities 

Capital  Stock    $25,000,000 

Accounts  Payable   9,957,581 

Surplus    13,098,605 


$48,056,186 

The  company  has  many  valuable  wells  throughout  Penn- 
sylvania and  West  Virginia  and  ranks  next  in  importa-noe  to 
the  South  Penn  Oil  Company  in  that  region.  In  the  last  three 
years,  it  has  taken  rank  among  the  leading  producing  organ- 
izations in  the  Mid-Continent  fields. 

In  1914,  through  the  purchase  of  the  Avelon  Oil  and  Gas 
Company  and  the  Purvis  Turner  Oil  and  Gas  Company,  both 
Ohio  corporations,  for  a  total  outlay  of  about  $400,000,  the 
company  acquired  important  production  in  the  North  Lima 
fields.  During  1916  and  1917,  the  company  took  up  thousands 
of  acres  of  leases  in  the  new  Kentucky  fields  and  is  conduct- 
ing an  extensive  develonment  campaign  in  that  State. 

For  some  time,  the  parent  company  had  forseen  that  the 
principal  source  of  supply  for  some  years  to  come  would  be 


standard  Oil  Company  of  New  Jersey 


109 


In  Oklahoma,  and  early  in  1914,  Col.  Carter  went  to  Okla- 
homa and  arranged  to  take  over  the  producing  leases  of 
Thomas  Slick,  who  controlled  a  large  holding  of  the  most 
promising  acreage  in  the  newly  developed  Cushing  pool.  As 
the  Slick  holdings  were  largely  departmental  leases,  the 
Secretary  of  the  Interior  refused  to  sanction  the  transfer, 
under  the  4,800  acre  limitation  rule.  Secretary  Lane's  action 
was  based  on  his  assertion  that  the  controlling  ownership  of 
the  Carter  Oil  Company  and  the  Prairie  Oil  and  Gas  Com- 
pany were  identical. 

In  February,  1915,  Col.  Carter  again  visited  Oklahoma 
and  succeeded  in  acquiring  for  his  company  valuable  hold- 
ings in  the  Cushing  field  by  taking  over  from  John  H.  Mark- 
ham,  Jr.,  the  Eliza  Yarhola,  160-acre  allotment  and  the 
Luther  Manuel  160-acre  allotment,  both  in  the  north  end  of 
the  Cushing  field.  T3en  55,000  barrel  tanks  and  900,000  bar- 
rels of  oil  went  with  the  leases.  The  Eliza  Yarhola  property 
Is  regarded  as  one  of  the  most  remarkable  oil  properties  In 
the  cou-ntry.  The  seven  producing  deep  sand  wells  on  the 
lease  maintained  a  steady  average  above  15.000  barrels  a  day 
for  several  months.  The  Luther  Manuel  lease  also  was  de- 
veloped into  one  of  the  most  profitable  producing  properties 
in  the  Cushing  field. 

In  addition  to  the  tankage  and  oil  obtained  with  its  Mark- 
ham,  purchase,  the  Carter  Oil  Company  bought  twenty -thre€ 
55,000-barrel  tanks  and  contents  from  the  McMan  Oil  Com- 
pany; seventeen  55,000-barrel  tanks  filled  and  nine  building 
from  White  and  Sinclair,  and  seventeen  55,000-barrel  tanks 
and  contents  from  the  Devonian  Oil  Company.  The  com- 
pany also  made  several  important  contracts  with  Cushing 
producer.s  for  future  deliveries  at  the  low  price  prevailing  in 
March  and  April,  1915. 

Late  in  September,  1915,  the  company  purchased  from  the 
Quaker  Oil  and  Gas  Company,  a  subsidiary  of  the  Pure  Oil 
Company,  3,250.000  barrels  of  Cushing  oil  and  the  tanks  con- 
taining it  at  $1.05  for  the  oil  and  the  tanks.  When  crude 
advanced  the  Quaker  company  tried  to  back  out  of  the  sale 
but  after  legal  proceedings  had  been  instituted,  a  compromise 
was  made  whereby  the  Carter  Oil  Company  took  31  tanks, 
containing  1,705,000  barrels,  at  their  price  and  left  the 
Quaker  company  retain  29  tanks. 

By  December  31,  1915,  the  Carter  Oil  Company  had  20,000,- 
000  barrels  of  Cushing  oil  in  storage  and  a  daily  production 
in  Oklahoma  of  15,000  barrels. 

During  1916,  the  company  purchased  from  the  Merritt 
Oil  and  Gas  Company  for  $500,000  its  Boynton  pool  prop- 
erties, consisting  of  720  acres  and  a  one-half  interest  In 
160  acres  more,  with  900  barrels  daily  production  from  40 
wells.  The  company  also  purchased  for  $800,000  the  Skelley 
&  Russell  acreage  at  Healdton  and  for  $225,000  the  P.  L. 
Yoakum  production  at  Jenks,  Okla.  In  December,  1916,  the 
company  purchased  the  Derby  Oil  Company's  properties  in 
the  Augusta  (Kansas)  pool  covering  1,400  acres  with  1,800 
barrels  of  daily  production.  The  price  was  around  $2,000,000, 
bringing  its  investments  for  the  year  in  Mid-Continent  produc- 
tion  up  to  $3,500,000. 

During  1917,  the  company  purchased  for  $1,000,000,  a 
large  tract  of  acreage  in  the  El  Dorado  pool,  Butl'er  County, 
Kansas,  with  a  production  of  3.000  barrels  daily.  The  com- 
pany acquired  an  extensive  acreage  throughout  the  prolific 
Butler  County  fields  and  at  the  close  of  1917  had  a  daily  pro- 
duction of  over  10,000  barrels  in  Kansas  and  about  as  much 
again  in  Oklahoma. 


110 


standard  Oil  Company  of  New  Jersey 


To  get  this  oil  to  tidewater,  the  Oklahoma  Pipe  Line  has 
completed  a  40-mile  extension  from  the  Glenn  Pool  to  the 
Carter  tank  farm  at  Gushing.  With  this  line  working  the 
company  can  ship  15,000  barrels  a  day  to  Baton  Rouge  for 
transfer  by  tankships  to  the  Bayonne  refineries. 

The  company  has  erected  near  Yale,  Okla.,  a  topping 
plant  of  25,000  barrels  daily  capacity,  where  it  distills  the 
gasolene  and  kerosene  from  its  crude  and  ships  the  distillate 
to  Standard  Oil  Gompany  of  Louisiana.  The  installation  of 
a  $175,000  casing  head  gasolene  plant  at  Norfolk  will  also 
increase  its  output  of  gasolene. 

President — A.  F.  Corwin,  Pittsburgh,  Pa. 
First  Vice-Pres. — F.  C.  Harrington,  Sistervllle,  W.  Va. 
Second  Vice-Pres. — Edgar  G.  Pew,  Tulsa,  Okla. 
Treasurer  and  Asst.  Secy. — G.  B.  Ware,  Titusville,  Pa. 
Directors — A.   F.   Gorwin,   F.  C.   Harrington,  Edgar  G. 
Pew,   A.   Glarke  Bedford. 
Office — Sisterville,  W.  Va. 

The  West  India  Oil  Company 

This  company,  which  was  incorporated  originally  foi 
$100,000,  increased  its  capitalization  in  July,  1S15,  to  $3,000,000 
for  the  purpose  of  bringing  its  capital  to  a  parity  with  the 
company's  assets. 

The  company  markets  the  New  Jersey  Company's  prod- 
ucts in  Guba,  the  West  Indies  and  Central  America.  This 
brings  the  Panama  Canal  within  its  territory  and  it  has 
marketing  stations  both  for  fuel  oil  and  refined  products  In 
the  Canal  Zone.  The  company  also  operates  through  a  sub- 
sidiary, the  West  India  Refining  Company,  a  small  refinery 
at  Havana,  Guba.  Standard  Oil  Company  of  New  Jersey 
owns  all  but  the  directors'  qualifying  shares.  Officers  of  the 
company  are  F.  D.  Asche,  president,  and  G.  T.  White,  sec- 
retary. 

Deutsche-Amerikanische  Petr.  Gesellschaft 

Capitalization — 30,000,000  marks  ($7,140,000),  of  which 
only  9,000,000  marks  is  issued  in  the  form  of  voting  shares, 
the  remaining  21,000,000  marks  being  held  in  a  security 
known  as  Genuss-Scheine,  which  is  stock  without  voting 
power. 

The  business  of  the  company  is  the  transporting  and 
marketing  of  oil.  The  company  owns  important  storage  and 
marketing  stations  throughout  the  German  Empire  and  up 
to  the  outbreak  of  the  war  operated  a  fleet  of  40  tank  ships, 
most  of  which  have  since  been  sold  to  Standard  Oil  Company 
of  New  Jersey  and  transferred  to  American  registry.  The 
company  is  the  doniinant  factor  in  the  llluminaVCui:  oil  trade 
throughout  Germajy,  in  which  It  has  had  o  ly  two  im- 
portant rivals,  naively,  the  J  >>utsche  Bank  gi  of  com- 
panies, headed  by  Ibe  S^/eaua  lomana  Compan;  ,  Blelch- 
roeder  banking  g  C)iii>  comp.'  /es,  headed  by  Deutsche 
H  rdol  Aktien  Ges<  jlficha  .'t 

Allied  with  the  D.  A.  P.  G.  are  a  group  of  smaller  Ger- 
many marketing  companies  owned  by  the  Standard  Oil  Gom- 
pany of  New  Jersey,  known  as  the  Mannhelm-Bremer  Petr. 
Aktien  Gesellschaft  (Mannheim-Bremen  Petr.  Gompany),  the 
Stettin-Amerjkanische  Petr.  Import  Gesellschaft  (Stettin- 
American  P^etr.  Importing  Company),  the  Konigsberger- 
Handels  Compagnie  (Konigsberg  Trading  Gompany),  and  the 
Amerikanische  Petroleum  Anlagen  Gesellschaft  (American 
Petroleum  Depots  Company),  which  is  a  branch  of  the  Amer- 
ican Petroleum  Company  of  Holland. 


standard  Oil  Company  of  New  Jersey 


111 


This  company  was  transferred  early  in  1917  to  a  group  of 
German  shareholders,  headed  by  Wm.  Reidmann,  who  had 
long  been  president  of  the  company. 


Capital — 25,000.000  lei  (equivalent  to  francs).  In  1913  the 
capital  was  increased  from  12,500,000  lei  by  a  100  per  cent, 
stock  dividend. 

The  company  owns  important  producing  properties  in  the 
principal  producing  areas  of  Roumania  and  also  operates  a 
large  and  modern  refinery.  The  company's  product  is  sold 
throughout  Roumania,  the  Balkan  States  and  other  points  in 
the  Near  East,  as  well  as  throughout  Germany  and  Austria. 

The  growth  of  the  company's  physical  operations  is  set 
forth  as  follows: 


The  company's  financial  statement  for  1914  shows  not 
profits  of  9.847,591  lei  for  the  Refinery  Department  and  5,- 
119,889  lei  for  the  Producing  Department,  making  total  n«f 
profits  of  14,967,480  lel  or  francs,  from  which  the  dlrectori 
»;eclared  a  dividend  of  40  per  cent,  or  10,000,000  lei,  equlva- 
lei^t  to  $2,000,000.  The  balance  carried  forward  was  4,967,479 
lei,  M^hich,  with  the  surplus  of  304,794  lei  remaining  after  the 
stock  dividend,  gave  the  company  a  surplus  of  5,272,274  lel 
at  the  outset  of  the  current  year.  From  1915  profits  a  divi- 
dent  of  25  per  cent,  was  declared. 

It  appears  that  in  spite  of  the  Balkan  wars  the  company 
enjoyed  a  most  profitable  year  in  1913,  while  the  1914  report 
states  that  the  yield  and  export  of  the  company's  product* 
had  experienced  a  considerable  advance.  Business  was  very 
remunerative  until  the  outbreak  of  the  general  European  war 
and  the  closing  of  the  Dardanelles,  whieh  caused  a  sudden 
cessation  of  the  company's  activities. 

Following  the  invasion  of  Roumania  by  the  armies  of  the 
Central  Powers,  the  company's  properties  were  destroyed  as 
a  measure  of  military  necessity  by  the  representatives  of  the 
Allied  military  powers,  and  the  company  has  lodged  claims 
for  compensation. 

American  Petroleum  Company — Capital  7,850,000  florini 
($3,155,700)  is  the  principal  marketing  subsidiary  in  the 
Netherlands.  It  also  operates  in  portions  of  Western  Ger- 
many and  Belgium.  It  has  several  subsidiaries.  It  has  a  fleet 
of  seven  tank  ships. 


Society  pour  1©  vent©  de  perol©  ci-devant  H.  Rieth  &  Ci© — 

(Company  for  the  sale  of  petroleum,  formerly  H.  Rieth  A 
Company),  is  the  company's  principal  marketing  concern  in 
Belgium  and  Luxemburg.     It  has  several  sub-companies. 

Dansk©  Petroleums  Aktieselskab — (Danish  Petroleum  Com- 
pany) is  the  marketing  subsidiary  of  the  company  in  Den- 
mark. 

Societa  Italo-Americana  pel  P©trolio — (Italian- American 
Petroleum  Company),  capital  $1,000,000,  is  the  marketing 
subsidiary  in  Italy,  where  an  extensive  business  is  conducted. 
The  company  has  large  storage  installations  and  operates  a 
plant  for  manufacturing  cans.  It  also  operates  a  fleet  of 
three  tank  ships. 


Romana-Americana  Company 


Production   

Refinery  Consumption 
Refinery  Production. . . 


1914 

(Tons) 
420,531 
384,550 
382,480 


1913 

(Tons) 
333,228 
301,596 
299,462 


1912 
(Tons) 
206.147 
233,050 
225,737 


112 


Standard  Oil  Company — New  York 


STANDARD  OIL  COMPANY  (New  York) 

Incorporated  in  1882  under  the  laws  of  New  York. 

Capital  Stock — $75,000,000;  par  value,  $100.  The  capital 
stock  was  originally  $5,000,000,  having-  been  increased  to 
$7,000,000  in  1892  and  to  $15,000,000  in  1903.  On  June  5,  1913, 
the  stockholders  ratified  the  proposal  to  increase  the  capital 
to  75,000,000  by  a  400  per  cent,  stock  dividend,  which  was 
distributed  on  June  30th. 

Dividends — Prior  to  dissolution  dividends  were  reported  70 
per  cent,  in  1903  and  10  per  cent,  in  1906.  Since  dissolution 
dividends  have  been  declared  payable  as  follows: 


1918- 

— Jun  15 

3% 

$2,250,000 

1915- 

— Sep  15 

2% 

$1,500,000 

Marl5 

3% 

2,250,000 
2,250,000 

Jun  15 

2% 

1,500,000 

1917- 

—Dec  15 

3% 

Mar  15 

2% 

1,500,000 

Sep  15 

3% 

2,250,000 
2,250,000 

1914- 

—Dec  15 

2% 

1,500,000 
1,500,000 

Jun  15 

3% 

Sep  15 

2% 

Maris 

2% 

1,500,000 
1,500,000 

Jun  15 

2% 

1,500,000 

1916- 

—Dec  15 

2% 

Maris 

2% 

1,500,000 

Sep  15 

2% 

1,500,000 

1913- 

—Jun  30  400% 

Stk.  Div. 

Jun  15 

2% 

1,500,000 

Jun  16 

6% 

900,000 

Marl5 

2% 

1,500,000 

1912- 

—Jun  6 

6% 

900,000 

1915- 

—Dec  15 

2% 

1,500,000 

1911- 

—Dec  15 

20% 

3,000,000 

Total  Dividends  since  the 

$35,550,000 

Business — Although  operating  several  refineries,  the  com- 
pany's principal  business  has  been  the  marketing  of  petro- 
leum products  in  the  domestic  and  foreign  trade  and  in  con- 
nection with  the  latter  the  operation  of  an  extensive  fleet. 
With  the  acquisition  in  1918  of  a  45  per  cent,  interest  in  the 
Magnolia  Petroleum  Company,  the  company  added  oil  pro- 
duction to  its  activities  and  brought  its  refining  output  up 
to  a  level  with  its  marketing  resources. 

Properties — The  company  has  extensive  and  modern  retir> 
eries  located  as  follows: 

New  York  Harbor;  Pratt  Works,  Brooklyn;  Devoe  Works. 
Long  Island  City;  Sone  and  Fleming  Works,  Long  Island 
City.  '  Combined  ca'pacity,   20,000  barrels  dally. 

Buffalo,  N.  Y.,  Atlas  Refinery;  daily  capacity,  2,000  barrels 

The  Pratt  Works  is  the  largest  wax  plant  in  this  country 
and  since  the  outbreak  of  the  war,  additions  have  been 
made  because  of  the  greatly  increased  export  demand  for 
paraffine  products. 

The  company  also  operates  at  Oswego,  N.  Y.,  a  large 
factory  f'*ir  making  "shocks"  for  the  can  and  casing  depart- 
ment of  Its  own  and  other  companies.  In  connection  with  the 
Devoe  Works,  a  large  canning  and  casing  factory  is  operated. 
In  North  Tenth  Street,  Long  Island  City,  the  company  ha« 
an  extensive  cooperage  and  shipping  department  and  a  large 
paint  manufactory.  An  extensive  ship  building  and  repair 
yard  is  maintained  In  Long  Island  City,  under  the  name  of 
the  "Empire  Yard." 

The  company  has  erected  at  Tientsin,  China,  a  candle  fac- 
tory which  is  equipped  with  32  candle  making  machines,  and 
has  a  daily  capacity  of  400,000  candles. 

The  company  completed  before  the  war  a  large  storage 
station  and  distribution  plant  at  the  Pireaus,  the  port  of 
Athens,  Greece.     A  can  factory  is  part  of  the  installation. 

The  company  owns  the  building  at  No.  26  Broadway  and 
a  $1,500,000  plot  at  No.  50  Broadway,  running  through  to 
New  street,  on  which  an  Arcade  building  was  erected 
during  1915.  The  company  also  owns  other  property  in  New 
York  City  and  state,  and  has  extensive  holdings  throughout 
New  England,  and  also  in  China. 


standard  Oil  Company — New  York 


113 


The  main  distributing  stations  for  its  uiarkeLiiig  organiza- 
tions are  ai  UorfLon  and  East  Boston,  Aiass.  ;  I'urtland  and 
Rockland,  Maine;  Providence  and  East  Providence,  R.  1.  , 
Bridgeport,  Harilord  and  Wilson's  Point,  Conn.;  All>any  and 
Buffalo,  N.  V.  Al  all  these  points  the  conipaDy  oans  real 
estate. 

An  adjurun  to  tne  company's  extensive  marketing  organ- 
ization is  its  fleet  of  oil-carrying  ships  and  barges.  In  It* 
financial  siawintin  tor  1912,  marine  equipment  was  carried 
at  $4,000,000,  uuf  during  1913,  $3,000,000  additional  was 
expended  for  the  construction  of  five  new  steanjships  and 
two-  barges.  The  marine  transportation  business  of  the  com  - 
pany has  become  so  large  that  it  was  decided  to  conduct  11 
under  a  subsidiary  corporation,  the  Standard  Transportation 
Company,  which  is  described  hereinafter. 

Rei^ent  Acqii'^Biticns — In  March,  191S,  the  company  an- 
nounced an  acquisition  of  a  45  per  cent,  interest  in  the  Mag- 
nolia Petroleum  Company,  one  of  the  largest  producing  and 
refining  companies  in  the  Mid-Continent  ancl  Gulf  Coast 
regions.  The  Magnolia  Company,  which  had  an  authorized, 
capital  of  $30,000,000  with  $22,000,000  outstanding,  increased 
its  authorized  capital  on  January,  1918,  to  $60,000,000  and 
issued  100.  per  cent,  subscription  rights  at  par,  thus  bringing 
its  outstanding  paid  up  capital  to  $44,000,000.  The  Standard 
Oil  Company  of  New  York  purchased  enough'  stocks  and 
"rights"  from  the  John  D.  Archbold  estate  and  from  Henry 
C.  Fogler  to  bring  its  holding  in  the  new  capitalization 
up  to  -lr>  per  cent.  Under  the  by-laws  of  the  Magnolia  Petro- 
leum Company  any  of  its  stock,  held  by  or  for  a  corporation, 
is  non-voting  but  participates  in  dividends  and  other  benefits. 

Through  its  purchase.  Standard  Oil  Company  of  New  York 
obtains  an  interest  in  a  daily  production  of  around  45,000 
barrels  in  Texas,  Oklahoma  and  Kansas,  a  pipe  line  system 
running  from  the  Kansas  fields  to  the  Gulf  Coast,  refinery 
plants  at  Beaum^ont,  Corsicana  and  Fort  Worth,  Texas,  with 
a  combined  daily  capacity  of  50,000  barrels. 

On  December  31,  1917,  Magnolia  Petroleum  Company  had 
net  assets  of  $82,156,024,  compared  with  net  assets  o-f  $29,- 
581,311  at  the  close  of  the  previous  year. 

Following  the  announcement  of  the  company's  acquisition 
of  a  45  per  ctnt.  interest  in  the  Magnolia  Petroleum  Com- 
pany, the  Federal  Trade  Commission  lodged  a  complaint 
against  it  alleging  a  possible  violation  of  the  Clayton  Act  in 
that  the  purchase  might  tend  to  lessen  competition  and  create 
a  monopoly.  The  company  will  answer  that  as  it  had  no 
producing  properties  and  insufficient  refining  facilities  to  meet 
its  marketing  needs,  the  purpose  was  solely  to  round  out  its 
organization  and  place  it  on  a  footing  with  other  large  oil 
corporations.  The  combined  companies  will  control  around 
six  per  cent,  of  the  refining  capacity  of  the  country  and  about 
five  per  cent,  of  the  producing  output. 

The  Standard  Oil  Company  of  New  York  purposes  to  erect 
a  targe  plant  at  East  Providence,  R.  I.,  for  refining  crude 
petroleum  and  for  facilitating  the  distribution  of  its  products 
throughout  New  England  Territory.  In  applying  recently  for 
a  building  permit  from  the  town  of  East  Pro^^idence.  the 
company's  representative  stated  that  a  complete  refining 
plant  would  be  built  for  the  manufacture  of  gasolene,  kero- 
sene and  fuel  oil  and  in  addition,  lubricants,  wax  products 
and  coke  would  be  produced  on  a  large  scale.  In  addition 
the  company  purposes  erecting  a  large  can  and  case  factory 
and  a  shipyard  for  building  and  repairing  its  vessels.  The 
plans  call  for  the  erecting  of  a  600  foot  sea  wall  of  solid 
concrete  masonry,  projecting  for  50  0  feet  into  Narragansett 
Bay. 


114 


Standard  Oil  Company — New  York 


These  improvements  hav§  been  undertaken  because  of  the 
g-rowing  importance  of  the  New  England  market  for  fuel  oil 
and  other  petroleum  products. 

The  dissolution  found  the  company  entrenched  «olIdly  ai 
the  paramount  selling  organization  in  the  wealthiest  and  moit 
thickly  settled  portion  of  the  country — its  territory  embracing 
New  York  State  and  the  New  England  States.  Every  portion 
of  this  territory  is  easily  accessible  by  economic  water  routes, 
Is  the  most  intensively  developed  manufacturing  section  of 
the  country  and  represents  the  highest  per  capita  consump- 
tion of  gasolene  for  automobile  and  motor  boat  purposes. 
These  conditions  are  reflected  in  the  company's  large  market- 
ing profits. 

Residents  of  New  York  and  the  New  England  States  are 
familiar  with  the  company's  aggressive  sales  campaign  on 
"Socony"  products.  The  wisdom  of  this  is  apparent  from 
the  fact  that  there  are  500,000  motor  driven  vehicles  in  this 
territory,  with  an  average  consuming  capacity  of  1.000,000 
gallons  of  gasolene  a  day. 

In  the  recent  report  of  the  Federal  Trade  Commission,  It 
was  stated  that  while  Standard  refineries  generally  sold  65  per 
cent,  of  the  gasolene  consumed,  Standard  Oil  Company  of 
New  York  had  70  per  cent,  of  the  gasolene  sales  in  its  terri- 
tory. 

Since  the  dissolution,  the  company  has  made  some  experi- 
ments in  production,  mainly  in  regions  adjacent  to  its  great 
foreign  markets.  For  two  years  its  drilling  crews  conducted 
an  active  development  campaign  in  North  China,  without 
achieving  success.  The  company  also  had  valuable  conces- 
sions in  Turkey  and  Palestine,  where  development  has  been 
interrupted  by  the  war. 

The  interruption  of  the  company's  development  project  in 
China  has  not  interfered  in  anyway  with  the  company's  large 
marketing  interests  throughout  the  Chinese  Empire,  where 
it  is  the  dominant  marketing  concern. 

Fourteen  years  ago  the  company  began  an  aggressive  cam- 
paign to  introduce  its  products  in  the  Chinese  Empire.  Rapid 
progress  was  made  through  the  introduction  of  a  simple 
kerosene  lamp,  given  away  at  first  and  later  sold  at  cost.  By 
the  use  of  this  Mei  Foo  (Good  Luck)  lamp,  the  Chinese  silk 
workers  were  able  to  extend  their  working  day,  which  form- 
erly had  been  constricted  to  the  daylight  hours.  Two  million 
of  these  lamps  are  now  sold  annually  in  China,  while  the 
consumption  of  kerosene  has  risen  from  13,500,000  gallons  in 
1903  to  120,000,000  gallons  annually.  Even  with  this  consump- 
tion, only  the  surface  of  the  country's  consuming  capacity 
has  been  scratched  as  there  are  400,000,000  persons  to  edu- 
cate up  to  the  use  of  illuminating  oil. 

The  company  has  been  for  some  years  the  dominant  oil 
marketing  agency  throughout  the  Orient. 

The  company's  financial  statement  for  1917  compares  as 
follows: 


1917 


1916 


Changes 


Total  Earnings  After 
Operating  Expense, 
Depreciation  and 
Sundry  Reserves  


$39,376,043    $36,638,494  +$2,737,549 

9,375,371    -f  9,375,371 

8,250,000        6,000,000      -f  2,250,000 


Less  Federal  Taxes. 


Dividends 


Balance  to  Surplus..  $21,750,672  $30,638,494 


—$8,887,822 


standard  Oil  Company — New  York 


115 


Balance  Sheet 


Real  Estate,  Plant,  Ves- 
sels, etc  

Deferred  Assets  

Merchandise  Inventory. 
Cash  and  Current  Assets 
U.  S.  Liberty  Bonds  


1917 

7,279,723 
265,631 
61,684,852 
60,014,527 


1916 


$61,825,470 
297,485 
64,861,907 
41,677,904 


Changes 

+  $5,472,253 

—  31,854 

—  3,177,055 
+  18,336,623 


15,075,000    +  15,075,000 


Total  Assets  $204,337,733  $168,662,766  -^$35,674,967 


Liabilities : 

Capital   Stock   $75,000,000  $75,000,000   

Surplus    90,386,246  68,635,573  +$21,750,673 

Reserve  for  Insurance  & 

Bad  Debts   3,108,541  2,437,051  +  671,490 

Res.  for  Federal  Taxes.  9,375,372    +  9,375,372 

Current    Liabilities   26,467,574  22,590,142  -f-  3,877,432 


Total  Liabilities  $204,337,733  $168,662,766  +$35,674,967 

Earnings  after  depreciation  and  sundry  reserves  were 
equivalent  to  $52.50  a  share,  from  which  $12.50  a  share  was 
reserved  for  Federal  Taxes,  leaving-  net  earnings  of  $40  a 
share,  compared  with  $48.85  in  1916  with  no  deduction  for 
war  taxes.  The  showing  is  exceedingly  creditable  in  view  of 
the  interruption  to  the  company's  large  Oriental  trade  throuffh 
scarcity  of  shipping  and  the  diversion  of  the  activities  of  its 
fleet  to  Government  purposes.  Plant  investment  was  increased 
practically  $5,500,000  after  depreciation  and  working  capital 
expanded  from  $83,949,669  to  $100,931,433,  of  which  $39,246,581 
represented  net  cash  assets  after  reserving  $9,375,372  for 
Federal  taxes.  At  the  close  of  the  previous  year  net  cash 
assets  were  $19,087,762.  The  book  value  of  the  stock 'increased 
during  the  year  to  $220.51. 

The  company's  growth  in  earning  power  and  earning  facil- 
ities since  the  dissolution  is  shown  in  the  following  table: 


Plant 

Book 

Year 

Earnings 

Kate 

Account 

Surplus 

Value 

1917.  . 

.  *$39,376,043 

52.5% 

$67,297,723 

$90,386,246 

$220.51 

1916.  . 

36,638,495 

48.8% 

65,825,470 

68,635,573 

191.51 

1915  .  . 

15,761,663 

21.0% 

45,811,270 

26,463,254 

135.28 

1914.  . 

7,735,919 

10.3% 

37,126,607 

15,471,958 

120.63 

1913.  . 

16,212,985 

21.6% 

40,314,370 

tl4,252,424 

119.00 

1912.  . 

15,185,211 

10.1% 

29,470,698 

59,386,338 

495.90 

^Before  deducting  $9,375,371  War  Tax. 

tAfter  declaring  a  400  per  cent,  stock  dividend. 


Net  assets  after  reserving  War  Taxes,  were  $165,386,246  on 
December  31,  1917,  compared  with  $53,740,359  on  December  31, 
1911,  showing  a  growth  of  more  than  200  per  cent,  since  the 
dissolution.  The  company's  volume  of  earning  power  has 
increased  proportionally. 

The  company's  conservative  dividend  policy  has  resulted  in 
the  accumulation  of  an  enormous  reserve  of  cash  assets  which 
enabled  it  to  purchase  the  minority  interest  in  the  Magnolia 
Petroleum  Company.  If  the  Federal  Trade  Commission  fails 
in  its  endeavor  to  block  the  sale,  the  company's  earning  power 
will  be  still  further  enhanced.  In  amy  event,  it  is  now  earning 
its  dividend  of  12  per  cent,  more  than  three  times  over  and 
consequently  is  piling  up  valuable  equities  for  its  shareholders. 


116 


Standard  Oil  Company — New  York 


Officers — President — H.    C.  Fogler. 

Vice-President — H.   L.  Pratt. 

Vice-President — W.  R.  King. 

Secretary — R.   C.  Veit. 

Assistant  Secretary — A.  T.  Doremus. 

Treasurer — H.    H.  Stein. 
Directors — H.  C.  Fogler,   H.  L.   Pratt,  W.   R.   K'ng.  R.  C. 
Vert,  C.  M.  Higg-ins,  C.  F.  Meyer,  H.  E.  Cole,  Martin  Carey 
and  L.  I.  Thomas. 

Transfer  <)sfi<'e — No.   26  Broadway. 
Annual  Meeting — Last  Thursday  in  May. 

STANDAKI)  TRANSPORTATION  (  O. 

Standarti  Oil  Company.  New  York,  announced  in  Julv. 
191. '».  the  incorporation  in  Delaware  of  the  Standard  Trant^- 
portation  Company;  capital  $15,000,000,  par  $100,  to  taki» 
over  the  marine  transportation  business  of  the  company.  In 
.addition  to  the  company's  original  fleet  of  nine  tankships  of 
25,469  gross  tonnage  and  eleven  coasting  tank  barges  of  26,443 
gross  tonnage,  there  ^vere.  constructed  since  1915  eight  tank- 
ships,  of  an  estimated  total  of  63,000  tons,  four  of  which  are 
of  a  special  type  of  10,250  tons  each,  built  for  the  Far  East 
service.  The  "Standard  Arrow,"  the  first  of  this  class,  was 
launched  May  15,  1916,  The  "Royal  Arrow"  was  launched  in 
September,  1916,  and  the  "Sylvan  Arrow"  and  "Broad  Arrow" 
were  launched  during  1917. 

The  charter  of  the  Standard  Transportation  Company  is  a 
very  broad  one,  permitting  the  new  company  to  build,  pur- 
chase, own,  equip,  navigate  and  operate  ships,  boats,  bartres 
and  tenders:  to  carry  on  the  business  of  ship  owners,  ship 
brokers  and  managers  of  shipping  property;  to  obtain  from 
the  Government  of  the  United  States  or  any  other  govern 
ment  the, registry,  license  or  enrollment  of  ships,  vessels  and 
boats  and  to  erect,  equip  and  operate  all  kinds  of  works  and 
buildings,  control  or  superintend  wharves  and  warehouses' 
where  ships,  stores,  petroleum  or  other  works  are  located. 

An  officer  of  the  company  authorizes  the  statement  that 
the  stock  of  the  Sta.ndard  Transportation  Coiripany.  excepting 
as  to  qualifying  shares,  will  be  held  by  the  parent  company 
and  not  distributed  as  a  stock  dividend. 

Convenience  in  transacting  business  under  a  distinct  cor- 
poration and  the  growing  magnitude  and  importance  of  the 
marine  transportation  activities  of  the  Standard  Oil  Com- 
pany. New  York,  are  the  reasons  stated  for  the  formation  of 
the  new  corporation. 

Lloyd's  Register  for  1916-1917  gives  the  following  vessels 
entered  under  Standard  Transportation  Company  ownership: 

Vessel  Gross  Tonnage  Vessel  Gross  Tonnage 

Acme   7,445      Socony    3,664 

Astral    8,100      Standard   Arrow   10,250 

Brilliant    2,487     Vesta   3,663 

Comet    2,487     Eagle    6,200 

Eocene    .   2,217      Tiger    6,200 

Perfection    2,309     Sylvan  Arrow   10,250 

Radiant    2,487      Broad  Arrow   10.250 

Ravo    3,664   • 

Royal  Arrow   10,250  01,023 

12  Miscellaneous  Vessels  knowm  as  Standard  Transpor- 
tation Company  Nos.  57  to  94   27,594 

')ther  Miscellaneous  Vessels   2,385 


Total  Tons'  in  Operation 


121,002 


standard  Oil  Company — Ohio 


117 


In  addition  to  the  above  the  company  operates  a  large 
number  of  tugs  and  barges  in  New  York  Harbor  and  on 
inland  New  England  waterways. 

The  officers  of  the  new  corporation  are:  R.  C.  Veit,  presi- 
dent; H.  E.  Cole,  vice-president;  H,  H.  Stein,'  secretary  and 
treasurer.  The  officers  are  also  directors  and  in  addition, 
O.  L.  Halenback  and  G.  D.  Ale.  The  company  maintains 
offices  at  26  Broadway. 


STANDARD  OIL  COMPANY  (Ohio) 

The  Standard  Oil  Company  of  Ohio  was  incorporated  tn 
11870  under  the  laws  of  Ohio.  In  1882;  the  entire  capita]  Stock 
was  owned  by  parties  to  the  trust  agreement.  The  company 
purchased  the  properties  of  the  American  Lubricating  Oil 
Company  In  1888. 

Capital  Stock — $7,000,000;  par  value,  $100.  The  capital 
stock   was   $3,500,000.     On  May   25,   1916,   the  stockholders 

authorized  an  increase  by  a  100  per  cent,  stock  dividend, 
Which  was  distributed  on  July  31,  1916. 

Dividends — Since  the  dissolution,  dividends  have' been  paiid" 
as  follo^^'s :  ' 


1918- 

— Jul 

1 

4% 

$280,000 

1915— Oct  1 

6% 

$210,066 

Apr 

1 

4% 

280,000 

Jul  1 

6% 

210,066 

Jan 

1 

4% 

280,000 

Apr  1 

6% 

210,000 

1917- 

—Oct 

1 

4% 

280,000 

Jan  1 

6% 

210,006 

Jul 

1 

4% 

280,000 

1914 — Oct  1 

6% 

210,000 

Apr 

1 

4% 

280,000 

Jul  1 

6% 

210,000 

Jan 

1 

4% 

280,000 

Apr  1 

6% 

210,066 

1916- 

—Oct 

2 

3  %  % 

262,500 

1913-^Dec  22 

5% 

175,006 

Jul  : 

n 

100% 

Stk.  Div. 

Sep  30 

5% 

175,000 
175,000 

Jul 

1 

6  % 

210,000 

Jun  19 

5% 

Apr 

1 

6% 

210,000 

Mar  31 

5% 

175,000 

Jan 

1 

6% 

210,000 

1912 — Dec  15 

5% 

175,000 

Total  Dividends  since  the  Dissolution   $5,197,500 

Properties — The  company  owns  the  Cleveland  Refining 
Works  at  Cleveland,  Ohio.  This  refinery,  on  which  $1,000,000 
were  expended  for  improvements  in  1911,  has  been  doubled 
in  capacity  since  that  time.     The  company  put  more  than 

$2,000,000  into  plant  extension  during  1915  and  exi^ended  an- 
other million  dollars  during  1917  installing  Burton  stills  in 
order  to  increase  its  gasolene  output. 

The  company  controls  60  per  cent,  of  the  gasolene  business 
in  the  State  of  Ohio,  and  the  demand  for  this  product  has 
increased  so  far  beyond  the  company's  manufacturing  capac- 
ity that  it  purchased  in  1915,  according  to  the  Federal  Trade 
Commission's  report,  38,000,000  gallons  from  Standard  of 
Indiana,  and  1,800,000  gallons  from  Cosden  &  Company  and 
other  Mid-Continent  refineries. 

The  company's  refinery  capacity  for  other  by-producis  la 
4,500  barrels  a  day,  and  Its  parafflne  works  are  among  the 
best  in  the  country.  The  company  also  conducts  a  marketing 
business  throughout  Ohio  and  since  the  dissolution  has  in- 
creased Its  marketing  stations  from  100  to  350. 


118  Standard  Oil  Company — Ohio 


The  company's  financial  statement  for  1917  compares  as 
follows : 

Assets:                            1917  1916  Changes 

Plant                                      $10,722,419  $8,350,329  +$2,372,090 

Merchandise                             5,399,001  2,833,932  +  2,565,069 

Cash                                            419,002  373,832  +  45,170 

Accounts  Receivable  and 

Other  Investments..  .  .       4^12,418  3,234,112  +  978,306 

Res.  for  Plant  Extensions    1,144,626  —  1,144,626 


Total   Assets   $20,752,842  $15,936,832  +$4,816,010 

Liabilities: 

Capital   Stock   $7,000,000  $7,000,000   ' 

Accounts  Payable   1,755,745  902,048  +  $893,697 

Depreciation  Account   2,419,728  1,995,394  +  3,537,978 

Surplus    9,577,368  6,039,390  +  3,537,978 


Total  Liabilities   $20,752,842    $15,936,832  +$4,816,010 

Note: — No  deduction  has  been  made  for  Federal  taxes  pay- 
able in  1918.  Federal  income  and  excess  profits  tax 
for  1917,  payable  in  1918,  is  estimated  at  $1,427,057. 

A  comparison  of  the  company's  balance  sheets,  indicates 
net  earnings  before  taxes  for  1917  of  $4,657,970,  equal  to  66.54 
per  cent,  on  its  $7,000,000  capital  stock,  and,  after  deducting 
$1,427,057  for  war  taxes,  the  indicated  earnings  were  at  the 
rate  of  46.15  per  cent.,  against  53.6  per  cent,  in  1916  and 
about  61  per  cent,  in  1915  on  $3,500,000  capital  stock  out- 
standing in  that  year.  Surplus  increased  $3,537,978  during 
the  year,  after  paying  $1,120,000  in  dividends. 

Plant  account  increased  $2,372,000  during  the  year,  after 
writing  off  $424,334  for  depreciation.  The  company's  w^orking 
capital  amounted  to  $8,274,876  at  the  close  of  1917,  compared 
with  $4,439,829  on  December  31,  1916.  The  book  value  of  the 
stock  was  $216.42  a  share  on  December  31,  1917,  after  allowing 
$20.39  a  share  for  War  Taxes. 

The  company  has  furnished  no  balance  sheet  prior  to  1915, 
but  from  the  Federal  Trade  Commission's  report  and  the 
company's  announcement  of  its  1912  surplus  for  income  tax 
purposes,  it  is  possible  to  make  the  following  analysis  of  its 
development  since  the  dissolution: 

Year  Earnings       Rate  Plant         Surplus    Bk.  Yal. 

1917   *$4,657,970      66.54%     $10,722,419  t$B,150,311  $216.42 

1916   3,751,936      53.59%        8,350,329      6,039,390  186.28 

1915   2,135,000    ^61.00%        6,163,880      6,749,954  292.85 

1912   4,040,345  215.43 


♦Before  deducting  $1,427,057  war  taxes. 

tAfter  reserving  war  taxes.       lOn  $3,500,000  capital. 

The  table  shows  the  great  increase  in  the  company's  earn- 
ing power  through  its  reinvestment  of  surplus  profits  in  plant 
expansion.  During  the  three  years  1913,  1914  and  1915  sur- 
plus increased  $2,709,609,  after  payment  of  $2,380,000  in  divi- 
dends, indicating  total  earnings  for  the  three  years  of  $5,- 
089,609  or  average  yearly  earnings  of  $1,696,536  for  the  period. 
Compared  with  1917  earnings  of  $4,657,970  from  the  operat- 
ing of  expanded  plant  facilities,  the  indicated  growth  in 
earning  power  is  175  per  cent.  Net  assets  of  $15,150,311  on 
December  31,  1917,  against  net  assets  of  $7,540,345  on  De- 
cember 31,  1912,  show  that  the  company's  invested  capital 
has  doubled  in  the  last  five  years. 

Officers — President — A.  P.  Coombe. 

Vice-President — W.  H.  Foster. 


Swan  and  Finch  Company 


119 


Treasurer — M.   G.  Vilas. 
Secretary — J.   M.  Robertson. 
Directors — A.  P.  Coombe,  W.  H.  Foster,  M.  G.  Vilas,  C.  G, 

Taplin,   and  B.   A.  Matthews. 
Transfer  Office — East  Ohio  Gas  Bldg.,  Cleveland,  Ohio. 
Annual  Meeting — Second  Monday  in  February. 


SWAN  AND  FINCH  COMPANY 

The  Swan  and  Finch  Company  was  incorporated  in  1891 
under  the  laws  of  New  York,  taking  over  a  business  that  had 
been  established  in  1853. 

Capital  Stock — The  authorized  capital  stock  is  $2,000,000. 
Par  value  $100,  of  which  approximately  $1,450,©©0  will  be  out- 
standing. The  original  capital  of  $100,000  was  increased  to 
$500,000  by  a  vote  of  the  stockholders  on  May  7,  1912,  and 
subscription  rights  were  extended  the  shareholders.  Gn 
May  1,  1916,  the  stockholders  voted  to  increase  the  capital  to 
$1,000,000  and  shareholders  again  enjoyed  the  rijrht  to  sub- 
scribe to  the  new  stock  at  par,  pro  rata  to  their  holdinrs. 
On  May  1,  1918,  the  shareholders  again  voted  to  increase  the 
authorized  capital  to  $2,000,000  and  the  management  an- 
nounced that  subscription  rights  at  par  to  the  extent  ©1  50 
per  cent,  would  be  extended  up  to  August  1  to  stock  of  record 
May  15. 

Dividends — Since  the  dissolution,  dividends  have  been  paid 
as  follows: 

1918 — May  1   21/^  %  ^24,250 

1917 — November  1   2^!%  24,250 

1913— March  31   5     %  25,000 

Total  dividends  since  dissolution..  $73,500 
Properties — The  business  of  the  company  consists  of  com- 
pounding and  marketing  lubricating  oils,  greases,  etc.,  for 
use  in  motor  vehicles  and  manufacturing  plants.  It  also 
controls  a  large  percentage  of  the  fish  oil  business  pf  the 
country,  and  deals  in  vegetable  oils,  as  well  as  conducts  a 
large  export  business  in  refined  petroleum  products  of  various 
kinds. 

.  The  company  was  among  the  first  to  study  aeroplane 
engine  lubrication  and  the  resultant  product  "Aerul"  is  al- 
ready an  established  trade  brand.  The  company  has  been 
supplying  one  of  the  allied  governments'  requirements  for 
aeroplane  lubricants  for  a  year  past. 

In  announcing  the  proposed  capital  increase,  President 
Henry  D.  Fletcher  made  the  following  statement: 

"It  is  a  pleasure  to  be  able  to  report  that  the  operations 
of  your  company  for  the  year  1917  were  more  profitable  than 
for  the  years  1915  or  1916,  and  that  the  sales  for  1917  were 
double  those  of  1915.  It  might  be  interesting  to  compare  the 
operations  for  the  year  1917  with  the  results  of  the  last  few 
years.  For  the  year  1913  the  company  reported  a  net  loss  of 
$34,557.13  and  for  the  year  1914  a  net  loss  of  $89,635.04.  Your 
present  Board  of  Directors  was  elected  at  the  annual  meeting 
in  February,  1915,  and  thereafter  a  thorough  reorganization  of 
the  company's  affairs  was  undertaken.  Progress  was  made 
during  1915,  with  the  result  that  the  operations  for  the  year 
showed  a  profit  of  $27,554.94;  in  1916  further  progress  was 
made  and  a  profit  of  $63,062.29  was  the  result.  It,  however, 
became  necessary,  because  of  the  increasing  business  in  the 
fall  of  1915,  to  borrow  from  the  banks,  and  the  indebtedness  of 
this  character  at  the  end  of  1915  amounted  to  $325,000.  In 
the  spring  of  1916  your  officers  recommended  an  increase  of 
$500,000  in  the  capital  stock  of  the  company,  and  this  increase 
was  subsequently  offered  to  the  stockholders  of  the  company 
at  par.    In  view  of  the  fact  that  the  company  had  reported 


120 


Swan  and  Finch  Company 


^(>-'^-^<-^  1  1  I  ^  »  "i  "  ^  '  llu  <-xiLCi  s  1  ^  s  i-^bup  of  ne^^  stock 
Wcis  .sv^iiu  xN  lull  u:;u;;-lui,  and  your  pros -dent,  therefore,  per- 
son.^  i\    UMdeiwio  ^  ^       ^  -  t    ol   s.v)fk   a^ULoul  fbar^t 

The  company  doculod  that  it  would  retain  stock  of  the  par 
value  of  .'f30,000  unissued,  for  the  purpose  of  future  sales  to 
its  eniploN   cb,   and  <  j*^  i   d  u%   stock,   th^iefo-p,   at  tre 

end  of  1M6  \%  as  S97J  ^  >(i  \  luSI  nulm^  this  mc^ea'-e  m 
^yorking  capital  of  $47o,!i(  0  -ird  the  profit  for  the  year  191G  of 
er  $G0,0')0  ]>Cw(iiit  i  >  ^ai  v  '.::,ain  to  ])oriou  from  the 
hank  ng  mh^Uo.-n  a  id  «  ^  '<  ms  at  the  end  vt  lOlu  aggre- 
gated  $300, Uj/. 

"During-  tli.  y-.-ir  l!]L7  your  managers  found  it  possible  to 
sed  ih  ^  1  )  t  >rs  and  the  plant  rn^c*  t  i  b^'  th'^  pre- 
ceding njancs^-m^nt  for  the  pioductK^i  -f  '-h  rd  and  f^-itd- 
izer.     This   plant    h.u  ho    -  ^      (    <^    — 'itnu>u,    '  s 

Since  us  ])  ^         ^  .  ha\  e  ijee  i  neco^- 

sar>  toin\t  '  <  i  oai.  ng  'c^L-pne-u 

in  oid'T  t(i  \u.:r.y  ^iic  ci  vj-;;  ( »rv .  i  La     ' even  assuming-  the 

fifel-^ii:^  ■  >  <'  J  'NCI  U  Hoerned  to  \  our  present  oihcers  tha.t 
sucn  a  i!  ;i  di i  J  i  i  1  I'.ivesiraent  was  noL  to  be  considered  for  a 
moment  ;ind  .m\v  h;ivo  therefore  been  attempting-  tor  tne  last 
three  yu'irs  rn  sell  the  entire  plant.  An  OT)portuniLy  offered 
in  the  spring-  of  1917,  and  althoug-h  the  sak^  rvs-alted  in  a 
book  los'.  to  \()i  comi)an>  of  .''^  121,919  25,  ne\  ertheloos,  we  1)^- 
r  ih  t  h  ^  I  M  Iv  I  M  ,  ^  (  ,  1  congi-aiulEiie  themsehes  that 
tho  t:omi)aiiy  is  now  r;d  {)t  this  dram  on  its  resources  and 
energies,  and  that  the  salo^  was  effected  before  the  opening  of 
the  season  of  1917.  which  was  more  disastrous  to  Ivienhaden 
fisheries  in  the  north  than  even  the  unprofitable  years  im- 
mediately preceding-. 

"During  1917  the  net  profit  from  operations  was  $203,468.93. 
Against  th:s  was  charged  the  loss  of  $121,919.25  on  the  sale 
of  the  fishing  plant  and  steamers.  The  net  profits,  there- 
fore, for  the  year  w^ere  $?l,rj49.68.  During  the  year  1917  the 
increase  in  cash  resources,  due  to  the  sale  of  the  fishing 
plant,  and  the  accumulated  profits,  aggregated  over  $350,000. 
Notw^ithstanding  this  fact  it  became  necessary  to  again  bor- 
row^ from  the  banks  and  the  condensed  balance  sheet,  certi- 
fied un^er  date  of  March  28,  1918,  by  our  auditonj,  The  Audit 
Company  of  New  York,  shows  that  on  December  31,  1917, 
your  company  v/as  indebted  cn  this  account  to  the  extent  of 
$450,000.  The  reason  for  these  borrowings  is  indicated  by  a 
comparison  of  the  inventories  of  1916  and  1917.  In  the  year 
1916  the  inventory  totalled  $1,148,461.44  and  in  1917  $1,- 
586,706.41.  The  indebtedness  to  the  banks  was  still  further 
increased  in  January,  1918,  to  $500, COO.  This  matter  has 
received  most  serious  consideration  from  your  Board  rf 
Directors,  particularly  in  view^  of  the  fact  that  the  prices  of 
merciiandlse  handled  by  your  company  are  stiii  advancing 
and  the  board  feels  it  to  be  essential  that  the  stock  of  your 
company  be  further  increased  in  order  to  meet  the  present  and 
future  needs  of  your  company.  They  therefore  recommend 
that  the  stock  of  the  company  be  increased  from  $1,000,000 
to  $2,000,000.  Some  time  ago  application  was  made  to  the 
Ca,pital  Issues  Committee  of  the  Federal  Reserve  Board  at 
Washington  for  leave  to  issue  new  stock  and  after  the  usual 
investigation  by  the  Committee,  your  company  received  on 
March  11,   1918,  a  letter  of  approval. 

"At  the  present  time,  therefore,  it  is  planned  to  issue  only 
$500,000  of  new  stock  in  accordance  with  the  Federal  Reserve 
Board's  permission,  but  the  increase  to  $2,000,000  is  deemed 
to  be  essential  for  the  development  of  the  company's  busi- 
ness. 

"The  right  to  subs-^ri^e  t-  "      ^        <■  ---'^^   wM  '-^e 

given  to  all  holders,  both  of  whole  or  fractional  shares,  to 
the  amount  of  50  per  ce.ii.  of  -r.-.v      p.  es<f  ;  c  ii.-.a .ngs. 


Swan  and  Finch  Company 


121 


"In  view  of  the  present  condition  of  your  company,  it 
does  not  seem  necessary  that  the  issue  of  the  new  stock  be 
underwritten.  The  proposed  issue  of  new  stock  of  the  com- 
pany would  be  used  to  liquidate  such  of  the  present  bank 
loans  as  are  not  paid  in  the  usual  course  of  business.  The 
additional  capital  would  also  enable  the  company  to  make 
extensions  of  their  business  which  have  been  under  consider- 
ation for  some  time,  and  would  justify  your  directors  in 
looking  forward,  without  perturbation,  to  the  increasing  cost 
of  raw  materials  entering  into  the  manufacture  of  its  products. 

The  net  profit  for  the  year  1917  was  equal  to  $8.40  per 
share  on  the  outstanding  stock,  while  the  operating  profit 
before  the  loss  on  plant  investment  was  charged  off,  amounted 
to  $20.97  a  share  for  the  year  1917.  On  December  31,  1917, 
the  book  value  of  the  stock  of  the  company  was  $160  a  share 
and  the  net  cash  resources  of  your  company  were  equivalent 
to  $152  a  share." 

Balance  Sheet  as  of  December  31,  1917,  compares  with  the 
previous  year  as  follows: 

1917  1916 
$154,447  ^502,501 

16,379   

6,264   

131,635 
390,126 


Assets: 

Plant  and  Equipment  

Syracuse  Branch  Good  Will. 

Securities  Investment  

Cash   

Accounts  Receivable. 


Merchandise  Inventory   1,586,706 


Expenses  Paid  in  Advance. 


11,207 


Total  Assets   i^2,296,765 

Liabilities: 

Capital  Stock   

Notes  Payable  

Accounts  Payable  

Estimated  Federal  Taxes.. 
Reserve  for  Depreciation... 
Reserve  for  Contingencies.  . 
Profit  and  Loss  Surplus.... 


Changes 
+$348,054 
+  16,379 
+  6,264 

—  3,461 

—  19,296 
+  438,245 
+  11,207 


$2,195,480  +$101,285 


135,096 
409,422 
1,148,461 


,$970,000  $970,000 
450,000 
170,031 
14,948 
33,737 


589,088 


487,135 
208,231 
53b,ii4 


+$450,000 
—  317,104 
14,948 
174,494 
68,962 
58,974 


+ 


+ 


Total   Liabilities   $2,296,765 

The  company's  progress  since  the  dissolution 
the  following  table 


$2,195,480  +$101,285 

is  shown  in 


Working: 

Book 

Year 

Earningrs 

Rate 

Capital 

Surplus 

Value 

1917  

.  .  .  *$81,o49 

8.4% 

$1,473,490 

$589,087 

$160.73 

1916 

63,062 

6.3% 

1,205,845 

530,114 

154.65 

1915, 

27,555 

t5.5% 

667,541 

467,052 

tl93.41 

1914  

.  .  .  ^89,635 

Deficit 

646,657 

439,497 

187.89 

1913  

.  .  .  ^34,557 

Deficit 

819,315 

529,132 

205.82 

1912 

50,000 

10.0% 

1,030,606 

588,689 

217.73 

*After  writing  off  a  book  loss  of  $121,919. 
ton  capital  of  $500,000.  |Loss. 
The  company   has  announced   recently,    the   erection   of  a 
storage  and  marketing  station  at  Providence  R.  I.,  to  supply 
its  New  England  busine&s. 

The  company  on   February  4,   1916,  abandoned  its  offices 
and  warehouse  occupied  for  many  years  at  Maiden  Lane  and 
Front  Street,  Ne>v  York  City,  now  maintaining  offices  at  165 
Broadway  and  a  warehouse  at  157  Maiden  Lane. 
Dthi'tTN— IM'esirient — Henry  Fletcher. 

\^ice-President  and  Treasurer — John  T.  Lee. 
Secretary — G.   E.  Brown. 
TrEinsfer  Office — No.  165  Broadway,  New  York  City. 
Annual  Meeting: — April  15th. 


122 


Union  Tank  Line  Company 


UNION  TANK  LINE  COMPANY 

The  Union  Tank  Line  Company  was  Incorporated  (n  1891 
under  the  laws  of  New  Jersey.  At  the  time  of  the  organiz- 
ation, the  company  purchased  from  Standard  of  Ohio  all 
of  its  tank  cars. 

Capital  Stock — The  capital  stock  Is  $12.(ion.On(i.  Par  value, 
$i\00. 

$7,500,000  5%  Equipment  Trust  Gold  Notes,  dated  August  1, 

1917,  and  maturing-  in  installments  of  $1,500,000  semi-annually 
beginning  August  1,  191 S.  Notes  secured  by  a  deed  of  trust 
on  about  4,7  50  new  standard  steel  tank  cars  valued  at  about 
$13,500,000. 

Dividends — Since  the  dissolution,  dividends  have  been  paid 
as  follows: 

1915 —  ?.Iar25  212  ^^  $300,000  1915 — Sep  25  21/2%  $300,000 
1917— Sep  25  2  1/2-0        300,000  Mar 2  5  21/2%  300^,000 

.A[ar25  2  14  So       300,000        1914 — Sep  25  21/2%  300,000 

1916 —  Sep  25  2 1/2  7r        300,000  Mar  2 5  21/2%  300,000 
Mar  2  5  2  1/2  7c  300,000 

Total  Dividends  since  the  dissolution   $2,700,000 

Properties  and  Business — The  company  owns  about  18,000 
tank  cars  which  it  leases  to  users  and  handlers  of  petroleum 
and  its  products.  At  the  time  of  the  dissolution  the  company 
had  12,000  cars,  4,000  of  which  were  of  obsolete  type.  These 
the  company  has  disposed  of  for  what  the  material  would 
bring,  as  fast  as  new  cars  could  be  manufactured  and  delivered 
to  it. 

The  company's  orders  for  equipment  in  the  last  five  years 
can  be  illustrated  as  follows: 

1912   1,000  cars        1915   1,000  cars 

1913   No  orders        1916   4,250  cars 

1914   2,100  cars        1917   2,200  cars 

Of  the  cars  ordered  during  1916,  only  2,000  were  delivered, 
leaving  the  company   2,850  to  be  delivered  on  January  1st, 

1918.  "With  the  funds  provided  by  the  issue  of  Equipment 
Trust  Notes,  the  company  intends  to  raise  its  equipment  to 
25,000  cars,  but  is  delaying  the  placing  of  additional  orders 
owing  to  the  scarcity  and  high  cost  of  materials. 

The  present  equipment  of  the  company  conforms  to  th« 
rigid  specifications  of  the  Interstate  Commerce  Commission 
and  the  Master  Car  Builders'  Association.  The  cars  are  of 
three  types  namely.  6.500.  8,000  and  10.000  gallons  capacity. 
Charges  for  the  rental  of  the  company's  cars  are  based  on 
capacities,  and,  as  increased  during  1917,  are  as  follows: 

Capacity  Initial  Charge  Daily  Rental 

6,500  Gallons   $3.42  $1.14 

8,000  Gallons   4.20  1.40 

10,0^0  Gallons   5.25  1.75 

The  shipper  pays  the  company  the  initial  charge  and  there- 
after the  daily  rental  while  the  car  is  under  load.  In  addi- 
tion, the  company  receives  from  the  railroads,  three-quarters 
of  a  cent  a  mile,  loaded  and  empty,  for  the  use  of  its  cars. 
The  railroads  in  turn  receive  from  the  shipper  the  regular 
tariff  charges  for  the  transportation  of  oil.  An  examiner  for 
the  Interstate  Commerce  Commission  in  May,  1918,  recom- 
mended that  this  mileage  allowance  paid  by  the  railroads  be 
ra.ised  from  three-quarters  of  a  cent  to  one  cent  a  mile. 


Union  Tank  Line  Company 


123 


The  company's  position  in  the  oil  industry  is  shown  by  the 
following  table: 

Tank  Car  0>vnership 

1913         Nov.  1,'15  Feb.  1/18 

Owned  by  Railroads   6/241  11,419  12,217 

Union  Tank  Line   13,050  13,778  18,270 

Other  Oil  Companies   5,410  19,011  39,027 

Union  Tank  Line  Company's  financial  statement  for  the 
year  ended  December  31,  1917,  compares  with  the  previous 
year  as  follows: 

1917  1916  Changes 

Net  Earnings    *Ji;3,709,516      $2,081,766  -f$l,627,750 

Dividends   .   600,000  600,000   

Surplus  for  Year   $3,109,516      $1,481,766  +$1,627,750 

Previous    Surplus   2,354,262  872,496      +  1,481,766 

Total   Surplus   $5,463,778      $2,354,262  +$3,109,516 

*The  Federal  Income  and  Excess  Profits  Tax  to  be  paid  by 
the  company  on  its  1917  earnings  amount  to  $859,918. 

Comparative  Balance  Sheets 
As*et*:  1917  1916  Changes 

Tank  Car  Equipment.  .  .  $23,624,482  $18,365,132  +  $5,259,350 
Less  Depreciation   5,584,979        4,878,307    -j-  706,672 

Balance    $18,039,504  $13,486,825  +  $4,552,679 

Real  Estate   10,395  12,095  —  1,700 

Shop  Investment    137,417  134,439  +  2,978 

Material    640,795  469,069  +  171,726 

Office  Furniture   21,022  16,424  -f  4,598 

Cash   706,067  42,099  +  663,968 

Accounts    Receivable...  1,970,617  598,791  -f  1.371,826 

Car  Trust  Fund   6,518,916    +  6,518,916 

Total   Assets   $28,044,733  $14,759,741  +$13,284,992 

Liabilities: 

Capital   Stock   $12,000,000  $12,000,000   

Car  Trust  Notes   7,500,000    +  $7,500,000 

Accounts  Payable   3,080,955  405,479  +  2,675,476 

Surplus    5,463,778  2,354,262  +  3,109,516 

Total  Liabilities   $28,044,733    $14,759,741  +$13,284,993 

Net  profits  before  deduction  of  Federal  taxes  amounted  to 
$3,709,516,  equivalent  to  30.91  per  cent.,  on  the  company's 
capital  stock.  After  deducting  war  taxes,  earnings  were  equal 
to  23.74  -per  cent,  compared  with  17.34  per  cent,  in  1916  and 
8.89  per  cent,  in  191,5,  in  w^hich  years  there  were  no  war  taxes. 
This  growth  in  earning  power  reflects  the  company's  heavy 
Investment  in  additional  tank  cars  and  replacements  to  its 
equipment,  and  also  the  advances  in  rates  w^hich  were  put 
into  effect  last  year  to  offset  the  increasing  cost  of  materials. 

Since  the  dissolution,  the  company's  record  of  earnings  has 
been  as  follows: 

Year  Earnings  Rate       Book  Value 

1917   *$3,709,516  30.91%  t$138.36 

1916   2,081,766  17.34%  119.61 

1915   1,067,958  8.89%  107.25 

1914   687,200  5.72%  103.37 

1913   1,203,229  10.03%  102.64 

1912   1,305.772  10.88%  92.62 

^Before  deducting  $859,918  war  taxes, 
t After  deducting  war  taxes. 


124 


Vacuum  Oil  Company 


This  increase  of  nearly  200  per  cent,  in  earning  power 
is  the  result  of  the  heavy  additions  to  equipment  the  com- 
pany has  been  making-. 

On  December  31,  1906,  net  assets  were  $2,645,135,  which 
compares  with  net  assets  of  $16,603,860  on  December  31,  1917. 
Utti<-ert* — President — Henry  E.  Felton. 

Vice-President — W.  A.  Barstow. 
Vice-President — Edward  C.  Sicardi. 
Treasurer — Elmo  L.  Gridley. 
Secretary — E.  F.  Cook. 
Directors — The  above  mentioned  officers  In  addition  to: 

Thomas  Beag-hen,  Jr.,  and  Abram  E.  Smith. 
Main  Office — 21  West  Fortieth  Street,  New  York  City. 
Transfer  Office — Equitable  Trust  Company. 
Annual  Meeting: — Second  Wednesday  in  February,  Jersey 
City,  New  Jersey. 

VACUUM  OIL  COMPANY 

The  Vacuum  Oil  Company  was  incorporated  In  1866  under 
the  laws  of  New  York. 

Capital  Stock — $15,000,000;  par  value,  $100.  The  capital 
was  orig-inally  $25,000,  but  it  was  increased  to  $2,500,000  in 
1903,  and  from  that  amount  to  $15,000,000  on  February  29, 
1912,  by  vote  of  the  stockholders  at  a  meeting  held  on  that 
date.  In  addition  to  the  capital  stock  outstanding,  there  were 
12,000.000  Bonds  on  Dec.  31,  1911,  which  have  been  retired. 
Dividends — Since  the  dissolution  dividends  have  been  paid 


450,000 
450,000 
450,000 
450,000 
450,000 
Subs,  at 
Par 

Total  Dividends  since  the  Dissolution   $7,050,000 

Properties — The  company  owns  a  refinery  at  Olean,  N.  Y., 
producing-  lubricating-  and  illuminating  oils  and  gasolene,  and 
has  recently  constructed  a  $5,000,000  refining  and  shipping 
plant  on  the  Delaware  River  below  Camden,  N.  J.  It  also 
has  plants  at  Rochester,  N.  Y.,  and  Bayonne,  N.  J.,  for  the 
manufacture  of  high  grade  lubricating  oils;  a  few  pipe  lines, 
and  is  interested  in  refineries  and  lubricating  oil  works  oper- 
ated by  foreign  companies  in  which  it  has  stock  ownership. 

The  new  plant  of  the  company  at  Bramwell  Point,  near 
Paulsboro,  N.  J.,  which  commenced  operation  during  the  sum- 
mer of  1917,  covers  a  plot  of  675  acres,  with  a  water  frontage 
on  the  Delaware  River  of  one  and  a  quarter  miles.  A  con- 
crete bulkhead,  1,200  feet  in  length,  will  allow  ample  docking 
space  for  the  company's  tankships.  There  are  three  and  one- 
third  miles  of  railroad  tracking  on  the  property  and  an 
eight-inch  pipe  line  has  been  laid  under  the  Delaware  River, 
connecting  with  the  main  trunk  line  of  the  Eureka  Pipe 
Line  Company  at  Essington,  Pa. 

The  buildings  now  practically  completed  are: 

Boiler  House  &  Power  Plant    Tank  and  Boiler  Shop 
Three  Still  Houses  Machine  Shop 

Wax  Plant  Pipe  Shop 

Fire  Pump  Houses  Carpenter  Shop 

Storehouse  Pattern  Storage  House 


as  follows: — 

1918— May  15 

5% 

$750,000 

1914- 

-Oct  31 

3% 

1917— Oct  29 

3% 

450,000 

May  15 

3% 

May  12 

5% 

750,000 

1913- 

—Oct  31 

3% 

1916— Oct  31 

3% 

450,000 

May  15 

3% 

May  15 

5% 

750,000 

1912- 

—Oct  15 

3% 

1915-  -Oct  30 

3% 

450,000 

Aug  16 

3% 

May  15 

5% 

750,000 

Jun  1 

500% 

Vacuum  Oil  Company 


125 


In  addition  there  will  be  a  tank  farm  for  crude  oil  supplies 
and  the  usual  rundown  tanks  and  storage  tanks  for  refined 
oils.  The  company  is  also  building"  an  acid  recovery  plant 
and  is  installing  a  new  sewage  treating  plant,  so  that  sewage 
discharged  into  the  Delaware  River  will  be  free  from  con- 
taminating acids  and  wastage.  During  1917,  the  company 
purchased  a  tank  farm  at  Olean,  N.  Y.,  with  66  storage  tanks, 
totaling  more  than  2,230,000  barrels  of  steel  storage  capacity. 
The  tank  farms  of  the  company  at  Olean  now  cover  424 
acres,  on  which  are  95  tanks,  making  it  the  largest  tank 
farm  east  of  the  Mid-Continent.  These  storage  facilities  will 
enable  the  company  to  operate  its  Olean  refinery  at  capacity 
at  all  times. 

Marine  Department — Owing  to  the  company's  extensive 
export  business,  and  its  inability  to  obtain  adequate  ocean 
transportation,  it  was  obliged  to  operate  its  own  vessels.  Ac- 
cordingly the  company  purchased  a  cargo  vessel  during  1915 
and  contracted  for  three  additional  cargo  boats  and  three 
tankships.  The  "Paulsboro,"  one  of  the  largest  tankshipa 
afloat,  and  the  "Bramwell  Point,"  the  first  American  com- 
mercial motor  ship,  were  added  to  the  company's  fleet  in  1916. 

During  1917,  the  cargo  vessel  Olean  was  placed  in  com- 
mission, the  Vacuum  was  topedoed  and  the  Rochester,  a  cargo 
vessel,  was  sold.  For  1918,  the  company  has  an  additional 
tankship  and  ocean-going  barge  under  construction. 

The  following  vessels  are  registered  under  Vacuum  Oil 
Company's  ownership: 


Thi-  rnmpany  does  an  extensive  export  business,  and  main- 
tains selling  organizations  in  all  parts  of  the  world  for 
the  purpose  of  marketing  its  products.  The  foreign  con- 
nections of  Vacuum  Oil  Company  are  as  follows:  Vacuum 
Oil  Company,  Bombay,  for  India,  Burmah  and  Ceylon;  Vacu- 
um Oil  Company,  Buenos  Ayres,  for  Argentine  and  South 
American:  Vacuum  Oil  Company,  Cairo,  for  Egypt  and  terri- 
tO'ry;  Vacuum  Oil  Company,  Copenhagen,  for  Denmark  and 
Norway;  Vacuum  Oil  Company,  Helsingfors,  for  Finland; 
Vacuum  Oil  Company,  Hong  Kong,  for  Hong  Kong,  Philippine 
Islands,  Straits  Settlements  and  Dutch  East  Indies;  Vacuum 
Oil  Company,  Kobe,  for  Japan  and  Korea;  Vacuum  Oil  Com- 
pany, Lisbon,  for  Portugal,  Canary  Islands  and  Morocco; 
Vacuum  Oil  Company,  Shanghai,  for  China  and  East  Siberia; 
Vacuum  Oil  Company,  R.  T.,  for  Austro-Hungary,  Greece, 
Balkan  States  and  Turkey;  Vacuum  Oil  Company  of  South 
Africa,  Ltd.,  for  all  South  Africa  and  Mauritius;  Vacuum 
Oil  Company,  S.  A.  I,,  for  Italy;  Deutsche  Vacuum  Oil  Com- 
pany, for  Germany;  Vacuum  Oil  Company,  Ltd.,  for  England; 
Vacuum  Oil  Company,  Prop..  Ltd.,  for  all  Australia  and  New 
Zealand;  Russian  Vacuum  Oil  Company,  Ltd.,  for  Russia  and 
West  Siberia;  Vacuum  Oil  Company,  S.  A.  P.,  for  Franc*, 
Belgium,  Holland.  Spain,  Switzerland  and  Algiers;  Vacuum 
Oil  Company,  A.  B.,  for  Sweden. 


Vessel 
Bramwell  Point  .. 
Constable  Hook  .  . 

Gargoyle  .  

Paulsboro   

Olean   

Emily  S.  Baymore 


Gross  Tonnage 


3,250 
1,861 
4,433 
6,945 
2,750 
256 


19,495 


12G 


Vacuum  Oil  Company 


Vacuum  Oil  Company's  financial  statement  for  1917  com- 
pares as  follows: — 

1917  1916  1915 

Net  Profits                             $12,149,677  $9,386,768  $6,986,294 

Less : — 

Insurance  Reserve   .  .  .         207,359  164,831  124,381 

War  Taxes    2,617,922   


Bal.  for  Dividends.     $9,324,396      $9,221,937  $6,861,913 

After  reserving  $17.45  a  share  for  War  Taxes,  earnings  for 
1917  were  at  the  rate  of  $62.16  a  share,  compared  with  $61.47 
a  share  in  1916  and  $45.00  in  1915  when  there  w^ere  no  war 
taxes. 


Comparative  Balance  Sheets 

Assets:                          1917  1916  Change 

Real  Estate,  Plant  and 

Equipm't  (Less  Dep.)  $12,776,636  $10,171,581  +$2,605,055 

Stocks  of  Foreign  Vac- 
uum Oil  Companies.     19,234,821  14,243,325  +  4,991,496 

Other   Investments                    40.881  14,533  -f-  26,348 

Government  Securities 
(used   for  guarantee 

deposits)                                  15,923  15,923   

Mechandise   &   Material     18,194,883  13,718,262  +  4,476,421 

Accounts  Receivable: 
From  Foreign  Vacuum 

Oil    Companies                  11,974,389  12,794,691  —  820,302 

From  Others                       8,224,936  5,740,211  +  2,484,725 

$20,199,325  $18,534,902  +  $1,664,423 

Cash  and  Securities            $5,703,189  841,619  +  4,861,570 


Total  Assets   $76,165,658  $57,540,148  +$18,625,510 

L,iabilities: 

Capital  Stock    $15,000,000  $15,000,000   

Accounts  Payable: 

Due  Foreign  Vacuum 

Oil  Companies    8,619,997  3,110,844  +  $5,509,153 

Sv^drv  Accts.  &  Bills 

Payable    8,899,449  6,926,803  +  1,972,646 


$17,519,446  $10,037,647  +  $7,481,799 

Branch  Office  Reserves.         194,034    +  194,034 

Insurance  Reserve                    699,316  491,958  +  207,358 

Income  Tax  and  Excess 

Pvo^ts  Reserve                    2.617.923    +  2,617,923 

Surplus                                  40,134.939  32,010,543  +  8,124,396 


Total   Liabilities..  $76,165,858    $57,540,148  +$18,625,510 


The  company's  official  statement  accompanying  its  bal- 
ance sheet  's  as  follows — : 

"After  charging  off  $207,358.92  for  Insurance  Reserve,  and 
setting  aside  $2,617,922.37  for  Income  and  Excess  Profit 
taxes,  the  profits  for  the  year  amount  to  $9,324,396.31. 

"The  new  refinerv  on  the  Delaware  River,  near  Pauls- 
boro,  N.  J.,  construction  of. which  was  begun  in  1916.  was 
practically  completed  during  the  year,  the  total  cost,  in- 
cluding some  unfinished  items  being  approximately  $5,500,000. 
The  first  crude  was  run  in  June,  and  by  the  end  of  the  year 
reasonably  full  operation  was  possible,  and  the  plant  is  now 
a  productive  factor  in  the  company's  operations. 


Washlngrton  Oil  Company 


127 


"During  the  year  tr.r  S.S.  "Olean,"  a  substantial  cargo 
vessel,  was  completed  aiid  added  to  the  company's  fleet.  The 
cargo  vtssel  "Vacuum"  was  lost  from  torpedo  attack,  and  the 
carg-o  vessel  "Rochester"  sold.  At  present  the  company  has 
in  course  of  construction  an  additional  tank  steamer  and  an 
ocea,n-going  barge. 

"Outlay  for  new  construction,  added  to  the  high  cost  of 
stocks,  material  and  operation,  excessive  ocean  freights  and 
other  unavoidable  cash  demands,  have  made  it  advisabl-e  to 
cons^'rve  earnings  so  that  the  company's  progress  could  con- 
tinue unhampered." 

Owing  to  the  necessity  of  setting  aside  $2,617,922  for  War 
Taxes,  the  company's  working  capital  shows  only  a  slight 
increase  during  the  year.  The  book  value  of  the  stock  in- 
creased, however,  to  $367.56  a  share. 

The  company's  development  since  the  dissolution,  is  shown 
as  follows: — 

Plant  Book 
Investment       Surplus  Value 
5^12,776,636  t$40,134,939  $367.56 
10,171,581      32,010,543  313.40 
4,816,904      23,988,606  259,99 
4,139,791      18,326,693  222.17 
3,501,108      17,151,049  214.07 
3,138,907      14,67''>.275  191.16 
2,106,554    $11,981,113  179,20 

*Before  deducting  $2,611,111  for  War  Taxes.  Surplus  and 
Book  Value  stated  as  after  deducting  War  Taxes. 
i'Does  not  include  earnings  of  foreign  Vacuum  Oil 
Companies.     JOn  capitalization  of  $2,500,000. 

The  result  of  the  company's  modest  dividend  policy  is  re- 
flected in  the  continuous  growth  of  its  Plant  Account  and  Net 
Investment.  In  the  past  six  years  plant  and  equipment 
have  increased  by  $10,670,082  after  depreciation,  while  net 
assets  have  grown  $40,653,826,  an  average  of  $6,775,672  or  45 
per  cent,  on  the  outstanding  capital  yearly. 
Officers — President — Edw^ard  Prizer. 

Vice-President — George  P  Whaley. 
Vice-President — Charles  E.  Bedford. 
Secretary — We,ndell  M.  Smith. 
Assistant   Secretary — Charles   E.  Arnott. 
Treasurer  and  Asst.  Secretary — Herbert  Bakf*r 
I>irectors— Walter    M.    McGee,    R.    W.    Everest,  Edward 
Prizer,   George  P.   W^haley,    Charles   E.    Bedford,    Charles  E. 
Arnott,  Charles  E.  Moser  and  Herbert  Baker. 
Main  Office — 61  Broadway,  New  York. 

Transfer  Office — Room  617,  No.  61  Broadway,  New  York. 
Annual  Meeting: — Last  week  in  February. 


Net  Profits 

Rate 

1917. . 

*J^11,942,318 

79,61% 

1916  .  . 

9,221.937 

61.47% 

1915.  . 

6,861,913 

45.60% 

1914. . 

t2, 075,644 

13.17% 

1913. . 

4,832,929 

32.32% 

1912. . 

4,159,006 

27.72  7^ 

1911. . 

2,938,036  $117.5  % 

WASHINGTON  OIL  COMPANY 

The  WasVifne'ton  Oil  Company  was  incorporated  In  IRJ??. 
under  the  laws  of  Pennsylvania 

Capital  Stock — The  capital  s*ock  is  $100,000.    Par  value  $10. 

Dividends — Since  the  dissolution,  dividends  have  been  paid 
as  follows: 

1917 — Dec  20     40%       $40,000        1914 — Dec  31     30%  $30,000 
1916 — Dec  20     40%         40,000        1913 — Dec   1     40%  40,000 
1915 — No  Dividends                                  Feb  20     40%  40,000 
Total  Dividends  since  the  dissolution   $190,000 


128 


Washington  Oil  Company 


Properties — This  is  a  crude  oil  producing  cuinpany  operai- 
ing  in  one  of  the  old  Pennsylvania  oil  helds.  Ai  ihe  close  oi 
1913,  the  company  had  4,897  acres  of  leaseholds,  350  acres 
oil  rights,   250  acres  land  in  fee,   1  acre  on   i  oyalty.   14H  oil 

wells  and  2  gas  wells.  The  company  also  owns  an  interest  in 
the  Taylorstown  Natural  Gas  Company. 

The  financial  statement  of  the  company  for  1917  compares 
with  the  previous  year  as  follows: 

1917  1916  Change 

Net  Profits    $52,384    $32,985  +ii;i9,399 

Dividends   40,000  40,000   

Balance  to   Surplus   $12,384    *$7,015  +$19,399 

Balance  Sheet  as  of  December  31 

Assets:  1917  1916  Change 

Producing  Plant    $69,501  $73,772  —$4,271 

Stock  in  Other  Companies   19,550  18,186  +  1,364 

Material   and   Merchandise   39,334  29,132  -[-10,202 

Cash    30,712  25,798  +  4,914 

Account  Receivable    2,228  206  +  2,022 

Total  Assets    $161,325  $147,094  +14,231 

Liabilities: 

Capital   Stock    $100,000  $100,000   

Accounts  r-ayable   3,079  1,232  +  $1,847 

Surplus    58,246  45,862  +  12,384 

Total  Liabilities   $161,325    $147,094  +$14,231 

Net  prolits  at  the  close  o^  1917  were  equal  to  52.38%  on 
the  $100,000  capital  stock  outstanding  compared  with  32.98% 
in  1916.  Book  value  at  the  close  of  1917  was  $15.82  a  share 
compared  with  $14.59  a  share  December  31,  1916. 

OttirerM — President — J.   I.  Buchanan. 

Vice-President — Douglas  Buchanan. 

Secretary  and  Treasurer — J.  C.  Burford. 
Dire<'t<)rs — The  above-mentioned  officers  and  in  addition: 

George  L..  Craig,  D.  Gregg  McGee,  M.  D.  Shields, 

G.  C.  Jolly. 

TranKfVr  Ottl«'«» — .^23   Fourth  Avpnue.  Plttsbursh.  Pn 
Annual   Meeting — Wednesday    following   first   Tuesday  in 
April. 


MM  2  0 


Wire  Service 


We  give  special  attention  to 
out-of-town  customers  and  invite 
telegrapliic  orders  and  inquiries 
at  our  expense. 


Statistical  Service 

We  liave  associated  with  us 
some  of  the  ieading  oil-news 
gatherers  of  the  country  and  are, 
therefore,  capable  of  keeping  our 
clients  in  close  touch  with  devel- 
opments affecting  their  Interests. 


CARL  H.  PFORZHEIMER  &  CO. 

NEW  YORK  CITY 
25  BROAD  STREET 

TELEPHONES  4ae0-1>2-3.4  BROAD 


We  Are  at  All  Times  Prepared 
to 

Buy,  Sell  or  Quote 
all 

Listed  or  Unlisted  Securities 


CARL  H.  PFORZHEIM ER  &  CO.f 

25  BROAD  STREET 
NEW  YORK  CITY 
TELEPHONES  4860-1-2-3>4  BROAD 


